GOODS TRANSPORT SERVICE, Service Tax

[SACHIN SHAH]

Sir,

We are the manufacturing of various HDPE & PVC products & we pay Service tax on GTA every month INWARD AND OUTWARD .

We pay servcie tax on ( Rs.100 -- Freight amount --- 75% amendment i.e. we pay service tax on Rs.25/- 10.30 % i.e. Rs.2.58/- Service tax deposit in Bank ) .

Now my Question is that can i take Cenvat credit on Input Service tax payment on GTA after benifit awailed of AMENDMENT ?

Please guide for this point .

Thanks ,

SACHIN

 

Posts / Replies

[Vijay Chitte]

Notification 01/2006-, dated 01-03-2006 was ommitted by Notification 12/2008-ST, datd 01-03-2008. To give effect to the 75% exemption, another notification 13/2008-ST, w.e.f 01-03-2008. Now, abatement is remorved, 75% exemption are avalable

w.e.f. 01-04-2011 u can not take credit of outward transportation, prior to this date it is arguable, But u can take credit of service tax paid on GTA on inward transportation as manufacturer.

 

[Mangesh Lokre]

 

Dear Mr Sachin

 

Beyond doubrt, you can avail the Cenvat Credit of Service Tax Paid on Inward Transportation. Made the payment on the Separate Challan.

As far as, Cenvat Credit on Service Tax Paid on Outward Tranporation is concern,  please refer to the Circular No. 97 /  8  /2007 dated 23-Aug-2007

Under certain condition, as prescribed under the Circular, you can avail the Cenvat Credit of Service Tax Paid on Outward Transporation

 

[Vijay Chitte]

IF outward freight is not included in assessable value, you should be very careful while taking Cenvat credit since dispute regarding assessable value may arise. Outward freight is eligible as input service even if its value is not included as valuation and cenvat credit are two different issues.