Service tax on gta (Service Tax)

This query is : Resolved

Author : Anonymous

( Author )
09 February 2012

Dear Experts,

We are 5 yrs old company. So far we have not registered for ST on GTA eventhough we have the transaction.

Now we want apply and get the registration. Can anyone tell the problem that could arise and how to come out of that?

Thanks in advance.

kartik_somu

( Expert )
09 February 2012

if you pay service tax on GTA, you can claim credit of the same.

But the interest costs are very high.

it is better you pay before getting a notice in this regard.

you will be ending up paying interest.

otherwise you will be paying penalty

Author : Anonymous

( Author )
10 February 2012

Thank you Mr. Kartik,

Can we take the entire credit on inward freight irrespective of the year once we make the payment...

Author : Anonymous

( Author )
10 February 2012

Thank you Mr. Kartik,

Can we take the entire credit on inward freight irrespective of the year once we make the payment..

Shyam Lal Naik

( Expert )
12 February 2012

There is no bar in taking credit. You can, provided you can establish that the freight is in relation to production of excisable goods or provision of taxable service.

Further, please ensure that you take a declaration from the Transport Agency that they have not taken Cenvat Credit or benefit of notification no. 12/2003, for the period prior to 01/03/2008, so that you can claim abetment of 75%.

Please note that service provided by indivisual truck owners is not taxable. Only service provided by Transport Agents are taxable, as judicially held.