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Service tax credit on pollution treatment charges under gta

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sujit naha

accountant

226 Points Posted on 16 July 2014

Sir, We are the manufacterer of Chemicals and having Service Tax Registration under GTA as Service Receipent.

As per Pollution Norms we have to send chemicals wastes to Common Effluent Treatment Plant for Treatment purpose and said Treatment Plant Authority always Bill raised with Service Tax.

Can we take credit of said service tax and utilised to Central excise duty ?

Please reply.

thanks

Replies (1)

CA Piyush Jhawar

Chartered Accountant

434 Points Posted on 16 July 2014

@ Sujit

Is the concern a firm,company i.e., belonging to the organised sector? If such is the case then service tax liability will be discharged by reverse charge mechanism (That is service reciever is liable to pay tax to the government!)

Since in your case it appears that your concern is from organised sector then YOU are liable to pay 100% service tax yourelf!

Also @ Sujit you need to know that as per Cenvat Credit Rules 2004 you can book the credit of such tax paid to the Govt.Also you cannot utilise any previous Cenvat Credit for the payment of such amount as per CCR 2004 (As the service recieved is not considered as output service!)

Cheerio!