Mitali Agarwal (Company Secretary) (638 Points)
22 January 2010An 100%EOU is paying service tax on GTA @ 25%.
Since the Company is availing abatement of tax by 75%, so the Deptt. has not allowed CENVAT Credit on 25% tax paid.
1- Is the stand of Deptt. correct?
2- And if it is correct, then whether there is any option by which we can claim whole amount of ST paid on GTA?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 22 January 2010
There is no bar on availment of credit on GTA input services. The dept officer may not have read the provisions / circulars properly.
Mitali Agarwal
(Company Secretary)
(638 Points)
Replied 22 January 2010
Thanks sir for your reply.
Could you plz quote the respective provision/circular, just to prove in front of the officer?
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