Can we take credit on GTA
This query is : Resolved
23 July 2007
Dear sir,
Our company buying yarn from a manufacturer and sale the same to domestic market as well as exports. we are paying lorry freight on goods purchased and we are responsible to pay service tax on such freight. and at the same time we are paying service taxes on commission on consignment sales( covering under clearing and forwarding agents). Now my question is whether we can take credit on service taxes which we paid on commission on consignment sales against our liability of service tax on GTA? whether there is any impact on notification 08/2006-19.04.2006 - CE(NT)? kindly clarify.
Our company buying yarn from a manufacturer and sale the same to domestic market as well as exports. we are paying lorry freight on goods purchased and we are responsible to pay service tax on such freight. and at the same time we are paying service taxes on commission on consignment sales( covering under clearing and forwarding agents). Now my question is whether we can take credit on service taxes which we paid on commission on consignment sales against our liability of service tax on GTA? whether there is any impact on notification 08/2006-19.04.2006 - CE(NT)? kindly clarify.
23 July 2007
No, you can not set off GTA liability against Cenvat credit of any other service. GTA liability shall be paid by you and afterthat it will be eligible for Cenvat credit.
Vasantha Kumar Reddy
(Expert)
23 July 2007
I agree with the answer given by Mr. sanjeev Kumar.
Shyam Lal Naik
(Expert)
24 July 2007
Dear Mr. Narendran,
Why do not you try the reverse. Utilise the tax paid on GTA to discharge your liability under C&F.
Why do not you try the reverse. Utilise the tax paid on GTA to discharge your liability under C&F.
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