We are a authorised car dealer. When principal co. sends us vehicle it pays freight to transporter and finally raise the bill to us. Can we take the cenvat credit on service tax on such transporting bill???
Vikash Agarwal (Student) (104 Points)
02 October 2012We are a authorised car dealer. When principal co. sends us vehicle it pays freight to transporter and finally raise the bill to us. Can we take the cenvat credit on service tax on such transporting bill???
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 02 October 2012
if you are paying service tax under reverse mechanism/ receipent og GTA services, then you are eligible, otherwise not.
to avail cenvat credit, you have to establish that such GTA services are part of input services, but in your case cars are sold on payment of VAT only, you are neither charging ED nor service tax on sale of cars, so these services does not qualify as input service for you.
Vikash Agarwal
(Student)
(104 Points)
Replied 02 October 2012