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GTA CREDIT

Bivas Nag (Accounts Officer) (352 Points)

21 April 2008

Anybody plese give the answers of my following queries:-

In case of GTA, Consignee paid freight charges to Transporter and also paid Service Tax on 25% value of total Transporter's Bills if transporter not charged service tax on his bills and accordingly take GTA Credit.

Now I'm asked that if transporter charged Service Tax on Freight above their Bills and consignee paid total amount inclusive of Service Tax, then at that time consignee claim the service tax portion as his GTA Credit or not, please clarify, and if possible please give the section, subsection and latest notifications.

Regards,

Bivas Nag

Accounts Officer

INOX Air Products Limited - Bokaro

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2 Replies

satynarayan tiwar (Professional) (61 Points)
Replied 02 May 2008

Definately getting credit for respective amount of paid service tax on GTS

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CA PRAMOD SARAOGI (Chartered Accountant) (1113 Points)
Replied 29 June 2008

Input Tax credit can be availed either by the Service Provider or BY THE PERSON LIABLE FOR PAYING SERVICE TAX Rule 2(1)(d) of the Service Tax Rules. Note in case of few specified persons liabilitity to pay service tax has been shifted on the shoulders of consignee. If you are directly paying the Service Tax on the transportation then you are eligible for Tax credit. You are even eligible for the Tax credit for the payment of service tax made by the transporter who in turn recovered it from you by adding it to your bill .