RAJENDRA SHAH (DY MANAGER ACCOUNTS & FINANCE) (43 Points)
19 June 2009WHETHER ONE CAN CLAIM CREDIT OF SERVICE TAX PAID ON RENT FOR STORAGE CHAQRGES AGAINST SERVICE TAX PAYBLE ON TRANSPORTATION CHARGES?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 20 June 2009
Dear Sir
As per the clarification by depptt in regard of GTA services is that in case of GTA services, laiblity for the payment of service tax is on the service receiver, so you have to pay service tax.
And if you go thru the rule 3(4) of cenvat credit rule -: i.e.
CENAVT CREDIT CAN BE UTILISED IN THE FOLLOWING PAYMENT
(d) service tax on PAYABLE any OUTPUT SERVICES.
So if you combined the ABOVE both explanation then you observed that GTA services is actually the OUTPUT SERVICES for transport agency and INPUT SERVICES for the company .............And at the same time, laiblity for the payment of service tax on GTA is also on the company (Service receiver)
So you CAN'T adjust the CENVAT CREDIT against the payment of GTA service tax.
Hope now you are clear
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 20 June 2009
Input service credit cannot be used to pay for another input service. Therefore the ST on tsorage cannot be used for GTA or vice versa.
A few years back the GTA service was deemed to be an output service at which time the input services could be used to pay for the deemed output service.
Neha Bathwal
(Student)
(32 Points)
Replied 07 July 2009
URGENT!
please tell me if input tax credit can be availed on service tax paid for LC Discounted? if yes, what is the % of credit that can be availed?
Neha Bathwal
(Student)
(32 Points)
Replied 07 July 2009
URGENT!
please tell me if input tax credit can be availed on service tax paid for LC Discounted? if yes, what is the % of credit that can be availed?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 07 July 2009
NEHA
Yes you can claim the credt of service tax paid on LC discount as it covers under "BANKING & OTHER FINANCIAL SERVICES "
And regarding % whatever charged by bank you should claim the same.
Neha Bathwal
(Student)
(32 Points)
Replied 07 July 2009
hey thanks sorabh..
no my doubt is that - can we take credit on the whole st paid or 1/3rd amt. or somrthing like that?
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 07 July 2009
Neha
There shuld be no doubts regarding that point. As whatever the service tax amount charged by service provider , service receiver can claim the credit os such service tax amount.................
Hope now your doubt has been sett off.
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