GTA - credit of service tax - service tax amount included in gross amount , Service Tax

[V.K. Verma]

Now input credit is not available in case abatement is claimed. In case of GTA, the receiver of service being a company, is liable to pay service tax. It pays tax @25%. My question is whether a manufacturer, redg. as ISD under service tax, distribute credit of service tax paid as GTA. It may be noted that the said manufacturer does not provide any other service. Another related issue is if a regd. service provider does not charge service tax separately in his bill, can the receiver of service (a regd. assessee under service tax) assume that he has paid service tax and claim the amount of assumed tax as input credit.

Posts / Replies

[Surender Gupta]

A manufacturer can be registered as ISD. In case of GTA service tax paid by the manufacturer, can be claimed as CENVAT credit on the basis of TR-6 challan. However, in other cases, if service tax is not shown on the invoice or bill, no cenvat credit is available on assumption basis.