Service tax GTA Payment Credit, Service Tax

[MUNIRAJ SRINIVASAN]

Dear Sir,

GTA Payment of Service tax Inword and outward charges , we can take input credit both

 

Posts / Replies

[rishi mohan]

the Cenvat Credit is very much available but one cannot utilize the same in paying the tax on GTA Input service. As per law, the tax under reverse charge mechanism (such as GTA, foreign commission etc.) has to be paid in terms of money only and not by credit.

[Seetharaman K C]

Cenvat credit can be taken, but payment of service tax under reverse charge mechanism needs to be settled in Cash only.  Cenvat credit cannot be used to make this payment

[Pradeep Khatri]

There is no restriction on availing CENVAT credit on GTA which pertains to inward freight but on outward freight it will be available only up-to to the place of removal.  Further, for exporting of goods you may also avail the exemption as mentioned in the Notification No. 31/2012-ST.