9911796707
TMI BlogInput Credit on ST paid on GTA ServiceX X X X Extracts X X X X X X X X Extracts X X X X ..... Input Credit on ST paid on GTA Service X X X X Extracts X X X X X X X X Extracts X X X X ..... he can get the credit of service tax paid on GTA service against the next months service tax liability. Reply By Razesh Sharma: The Reply: Dear Mr. Jain Vide Notification 12/2008 ST Dt 01.03.2008 the goods transport agency service is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. Thus the service tax will be paid only 25% of the freight irrse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective of who pay the service tax. Consequently, benefit of CENVAT CREDIT has been WITHDRAWN to goods transport agency service by deleting the said service from the scope of output service in the cenvat credit rule 2004 razesh Reply By Brijesh Verma: The Reply: Dear Mr. Paresh Jain, I feel that My Learned brother Razesh Ji has misunderstood your query insofar as he has gone to discuss the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of a GTA itself. As per available info, it seems clear that your client is a service recipient and you want to know about availability of Cenvat Credit of tax paid by him on the GTA input service. For this I would opine to the best of my limited knowledge, that the Cenvat Credit is very much available to your client but he cannot utilize the same in paying the tax on GTA Input service. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Off late there have been some judgments to the contrary which actually allow utilization of credit of GTA to pay tax on GTA itself later on, but I would not suggest the same to you. Reply By Mangesh Lokre: The Reply: Mr Jain I agree with the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Brijesh Verma. The liability of Service Tax Payment is with the person WHO PAYS THE FREIGHT. If your client is a manufacturer and paying the freight towards inbound and outbound carriage, then he has to pay the GTA by CASH only. He can avail the Cenvat Credit on Inbound Freight without any doubt but on Outbound Freight, the matter is in dispute. He may take credit on Outbound carriage looking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards the scope of service.
This credit can be utlised towards the paymetn of Excise Duty. X X X X Extracts X X X X X X X X Extracts X X X X
|
