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TMI BlogCENVAT CREDIT ON GTAX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sirs, My query is releating to availment of service tax credit on payment made by transporter. Please clarify whether we can avail cenvat credit of GTA paid by transporter. - Reply By raj kumar shukla - The Reply = CERTAINLY. BUT IS TRANSPORTER LIABLE TO PAY SERVICE TAX? PLEASE EXAMINE IN THE CONTEXT OF REVERSE CHARGE. IF YOU / SUPPLIER ARE ONE OF THE SEVEN CATEGORIES AND FREIGHT IS PAID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BY YOU, YOU ARE LIABLE TO PAY SERVICE TAX AND NOT THE TRANSPORTER. IN THIS CASE ALSO YOU CAN AVAIL THE CREDIT.BUT YOU NEED NOT PAY THE ELEMENT OF SERVICE TAX TO THE TRANSPORTER AS IT IS YOUR LIABILITY. IN THE NUTSHELL, YOU CAN AVAIL THE CREDIT IF ACTUALLY THE TRANSPORTER IS LIABLE TO PAY SERVICE TAX. OTHERWISE IT IS ADVISABLE TO NOT TO PAY THE TRANSPORTER.PAY YOUR SELF AND AVAIL THE CREDIT. DEP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T MAY OBJECT AVAILMENT OF CREDIT WHERE TRANSPORTER IS ACTUALLY NOT LIABLE TO PAY SERVICE TAX. - Reply By NEERAJ KUMAR, RANCHI - The Reply = I do agree with the above suggestion, only one thing I would like to add that pay your service tax liability by cash only and not through cenvat credit. - Reply By YP SOOD - The Reply = Sh. raj kumar shukla has very well answered the query and Sh. Neeraj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kumar has taken very good point. I agree. - Reply By J. Mangalaraj Doraisingh - The Reply = Dear Sanjeev, In terms of para 8 (b) of Master Circular No. 97 /8 /2007 dated 23 rd August, 2007, the extract of which is appended below, you can avail Cenvat Crddit subject to meeting the requirements of Rule 3 of Cenvat Credit Rule, 2004 . ISSUE: Whether a consignee can take credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the amount paid as service tax either by himself (as consignee) or by the consignor or by the Goods Transport Agency? COMMENTS: As p er Rule 3 of Cenvat Credit Rule, 2004 , C ENVAT Credit of, inter alia, service tax leviable and paid on any input services can be taken . The rule does not distinguish as to who (i.e. the GTA, the consignor or the consignee himself) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has paid the aforesaid tax. The only condition required to be satisfied is that the consignee must be a manufacturer of excisable goods or a provider of taxable service and the service must be in the nature of input service for such activity . In case of inward transportation of inputs or capital goods, such service (being specifically mentioned under the definition of input service ) would q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ualify to be called as input service and, thus, the service tax paid (by any of the persons mentioned above) on it would be eligible as credit to the receiver if he is either a manufacturer of excisable goods or a provider of taxable service. J. Mangalaraj. Mumbai - Reply By P Ovhal - The Reply = Dear Experts, We are an Manufacturer-Exporter pay ST by GAR7 Challan on GTA (Inwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd-Outward) Services. As per Notification 13/2011-CE(NT) if we cant pay to tranporter within 3 Months can we need to reverce CENVAT Credit? Regards, - Reply By alok gupta - The Reply = The liability to pay service tax often lies upon the person who pays transport charges. The seven categories, categorized to pay ST on GTA service, are enough to bind almot every business entity because it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that either consigner or consignee definately falls under one of those categories. Hence, it is necessary to confirm whether liablity to pay ST falls upon you or not. As regards availment of CENVAT Credit, it is availble. ALOK GUPTA - Reply By B D CASTINGS LIMITED - The Reply = CENVAT CREDIT ON GTA We are manufacturer and paying excise duty. We also availing GTA service for inwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and outward transport and making service tax payment after abatement. Kindly intimate us whether we will get input tax credit of the above service tax payment after 01.07.2012? Regards Dilip Choraria K.C.Goyal (Advocate) - CENVAT CREDIT ON GTA - Query Started By: - sanjeev jadhav Dated:- 4-2-2012 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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