Vivek Khakhkhar (Assistant Audit Manager) (201 Points)
03 August 2014Dear Sir, Say a company has availed service of goods transporter & pays service tax by claiming 75% abatement as per service tax rules. Here can a private company take input of service tax paid on abated value on GTS?
For E.G., Rs. 5000/ charged by GTS 25% of 5,000/- comes to 1,250/- service tax @ 12.36% comes to Rs. 154.50/- can a private company avail as input? service tax paid as per above transaction.
ANUP GUPTA
(KEEP SMILING fcaanupgupta@gmail.com)
(303 Points)
Replied 03 August 2014
Can take inpt only for input transportation i.e., if paid to GTA for receiving goods. If GTA service avail for delivery of goods to customer then it input not available.
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 04 August 2014
Dear sir,
If it inward transportation the company can avail such input credit. whereas if the same is outward transportation the same is litigatable issue, but however if the terms of the contract of delivery is on FOB basis i.e if the manufacturer has the responsibility to deliver goods at the buyers premises the same should be treated as "Place of Removal" and not the sellers depot/factory. This clarity is given in circular as well.
Further, if you decide to avail such credit, please intimate to your superintendent of range in advance on letter head and then start avail such credit. so that he cannot dispute in future during the time of audit.
Thanks.
CAclubindia
