Input credit upon the service tax paid to GTA

In case of GTA instead of service provider Service receiver will pay the tax

As per Budget notification there is a dispute on GTA credit

According to the notification GTA credit is not allowed to the service provider but service receiver who pays the tax is eligible to take credit. Because GTA service is considered as an input service to the service receiver.

So service receiver can take credit of the service tax paid to GTA @ 3.09%

We are mfg.er and one of seven categories.

We are paying GTA service tax 25% on freight.

Can we take credit of GTA service tax paid by us.

Thanks

Kiriti

As given by you, you are manufacturer.

If you pay service tax on GTA services received by you, then you can take the CENVAT credit and adjust it in your excise liability

Yes, you are eligible for credit.

Cenvat credit of Service Tax paid on GTA is eligible on outward freight for destination the  ownership of goods remains with the manufacturer.

Service tax paid on freight inward (upto the place of removel) after abaitement in GTA adjust while, paying excise liability and/or service tax liability on output service.

Hi all ,

we are a tower manufacturing company paying for freight inward as well as for freight o/w,

we are depositing gta on freight of both inward/outward ,(on the basis of 25% of freight @ 10.3%)

now the question is that whether the gta we are paying can be taken as input credit while paying the excise duties .

please help

regards

Hi all ,

we are Automobile parts manufacturing company paying for freight inward as well as for freight o/w,we are depositing gta on freight of both inward/outward ,(on the basis of 25% of freight @ 10.3%)

now the question is that whether the gta we are paying can be taken as input credit while paying the excise duties . Till date service tax department authorities have not objected  but now they have informed us we can not take the credit. Can any body clarify this . Is their any rules pertaining to this . 

please help

regards

The matter of ST credit on inwards and intermittent movement is clear.. Credit available no dispute.

For otwasrd fregiht there have beeb some disputes and at present the decision to restrcit the same by the Tribunal has been stayed by the Karnatak HC. You could aavil the credit and if object\d by the dept reverse the same [ only outward freight amount] under protest.

Hi,

Please clarify my quarry :-

We have paid our GTA liability for the month of Apri'12 on 05.05.2012 .

Can we take credit of GTA in the return of April'12.

Regards.....

We are logistics and warehousing company. We are paying service tax on transport services under GTA. We are paying 12.36% of ST on 25% of transport charges(on transport charges of rs.100/- we are paying rs.3.09 as serv.tax). Pl. inform can we avail,as input credit, this service tax of rs.3.09 to adjust against our ST payment liability.

----Madhu