anony (MANAGER) (145 Points)
22 March 2012DEAR SIR,
WE ARE A KRAFT PAPER MANUFACTURING COMPANY, i HAVE THE FOLLOWING DOUBT IN MY MIND:
SUPPOSE WE ARE SENDING SOME OF OUR STORE ITEM FOR JOB WORK & PAYING FREIGHT & SERVICE TAX ON GTA ON THIS TRANSACTION.
ARE WE ELEGIBLE TO CLAIM CENVAT CREDIT OF SUCH AMOUNT?
OR WHETHER WE CANT CLAIM THIS AS CENVAT CREDIT, REASON BEING IT IS IN THE NATURE OF OUTWARD FREIGHT.
PLZ HELP ME OUT AT THE EARLIEST POSSIBLE.
REGARDS,
LALIT DHABRIA
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 22 March 2012
Hello Lalitji,
Service Tax paid on GTA service cannot be claimed as CENVAT Credit.
It is an Output service (as rightly pointed out by you)
Regards
Prateek
CA.Ganesh
(Practicing Chartered Accountant)
(308 Points)
Replied 22 March 2012
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 22 March 2012
Mr Ganesh,
I was wrong in pointing out that the GTA was an output service without considering it as an Input service.
I agree with your view. Thanks for rectifying me.
Regards
Prateek
vishal
(Article)
(49 Points)
Replied 22 March 2012
Hi,
Cenvat Credit can be claimed in this case. GTA is not a output services within the meaning of Rule 2(p) thus GTA cannot claim cenvat credit but if the receiver of service is paying service tax on reverse charge basis he can claim CC as it has not been excluded in the defination of Input service.
Regards,
Vishal saraogi
Uday Kiran
(Asst. Manager (Accounts))
(45 Points)
Replied 24 March 2012
As per my knowledge for GTA service, service tax is paid by either Consignor or consignee, Service Tax is 2.5% + education cess, it is non cenvatable there is a condition that to bifurcate under GTA service for transportation, Consignment note should be there. but we can pay service tax on Transportation by using Cenvat Credit.
Some one help me if it is wrong pls give reply to this.
Sumit
(Manager-Accounts & Finance)
(31 Points)
Replied 29 March 2012
yes the cenvat credit can be claimed on gta service
Bhandari
(BDM)
(21 Points)
Replied 10 April 2012
We are a Metal Ingot manufacturing factory registered under Excise and Service Tax. Our question is that if Service tax is paid on GTA after abatement i.e. only 25%, then can we claim CENVAT of this 25% paid OR do we have to pay 100% of the GTA tax in order to claim CENVAT.
vishal
(Article)
(49 Points)
Replied 10 April 2012
Hi Mr. Bhandari,
Service Tax is paid on GTA after abatement and you can clain CC of service tax paid (i.e. ST paid after abatement)
CA Dipesh Sarawagi
(Service)
(58 Points)
Replied 05 May 2012
Dear All,
Can we take the input credit of service tax paid on GTA under reverse charge mechanism. In that also we have two parts.i.e. Service tax paid on inward Freight and Outward Freight. Service tax paid on outward freight cannot be taken as input but service tax paid on inward frieght can we take credit??..one question comes here is that we pay only 25% of service tax on GTA, so whether we are eligible to take credit of service tax as already we have availed the abatement of 75%...please share your views...
Regards
CA Dipesh Sarawagi
India Forge & Drop Stampings Limited.
CA Rajat jain
(A)
(61 Points)
Replied 10 May 2012
| Originally posted by : Lalit Dhabria | ||
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Hi.... First fact to Avail Cenvat credit is that In Or in relation to manufacture of goods. if it is doing as repair not in relation to manufacturing of goods then can not avail cenvat but if the primary part of job wark (means job wark is essential ) then we should cenvat credit i hope this would right answer Ca Rajat jain
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LALITH
(acCOUNTS OFFICER)
(43 Points)
Replied 16 July 2012
WE ARE MANUFACTUERE OF TMT BARS.WE ARE PAYING SERVICETAX ON GTA INPUT SERVICE (WE RECEIVEING MACHINARY FROM OTHER STATE BY GTA) THE ST PAID ON FREIGHT, CAN WE ADJUST AGANIST THE EXCISE DUTY LIABILITY
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 17 July 2012
CAclubindia
