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Credit of service tax paid on gta

Service Tax (Legacy) 1278 views 3 replies

dear sirs

our company (contractors)pays service tax on gta service by cash 2000/-. after availing abatement .can we take credit of the same 2000 to pay service tax on works contract service. is there any difference when tax paid on inward transport and outward transport regarding tax payment and credit

Replies (3)

Yes. you can certainly take the credit, after making the payment of amount payable to Vendor(i.e. GTA) and service tax payment to the govt in respect of GTA.

However, it must be noted that the CENVAT of only inward transportation is allowed by virtue of Rule 2(l) of CENVAT Credit Rules, 2004. 

If You are availing abatement  on service , Cenvat can not be taken.

Credit of outward trasnportation is available upto the place of removal.


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