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cenvat credit

sushant gurav (Accountant) (396 Points)

25 July 2011

Sir,

Please tell me,

Iam an individual registered under service tax. I have taken registration for Cargo Handling and Goods Transport Agency.

Sir, I have a credit cards on which banks are charging service tax. My question is ,this charges by bank as service tax , whether i can claim that as input credit for any of my above mentioned taxable service.

Please guide.

Urgent

Thanks and regards

Sushant

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4 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 25 July 2011

GTA must have been registered as a reciver of service. No credit tobe taken thought here is some dispute pending.

The input services used for provding the cargo handling services are eligible. If the card is being used for personal purposes the credit would nto be available.

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pahuja (C.A Final Student ) (472 Points)
Replied 25 July 2011

Hi Mr Sushant, as per new service tax rules, You can not enjoy the benifit of cenvat credit arises through payment of credit cards, telephone bills etc., even they are used for professional purpose. Thanks and regards suraj pahuja

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 25 July 2011

For GTA if you are registered as receiver of service, the credit is not admissible. If credit card is used for the business of cargo handling , same may qualify for credit.

khushbu darak(CWA) (H & A team(indirect taxes)) (403 Points)
Replied 03 August 2011

Usage of cards should have some nexus with the service you provide either directly or indirectly..Then you can avail credit if you are not registered as service receiver.