Cenvat

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This query is : Resolved

Ishant Gulati (Querist)

28 May 2015 In Logistics Co. providing service of Warehousing , Transportation & Custom Clearance , whether complete CENVAT credit allowed of every input service as on Transportation by road in reverse charge , there is no CCR to service provider. So , whether for eg : on Internet bill they can claim entire service tax paid as CENVAT , if not , then whether there is prescribed method for segregation by service tax laws.

Shreyas Sangoi

Shreyas Sangoi (Expert)

29 May 2015 Cenvat credit can be claimed by the logistics company after following the provisions of Rule 6(3) of CCR.

Rule 6(3) prescribes a formula to reverse certain cenvat credit that is attributable to non-taxable services (such as transportation in the present case). Balance credit can be claimed.

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Ishant Gulati

Ishant Gulati (Querist)

30 May 2015 THANKS SIR FOR YOUR REPLY , I AM THINKING OF RULE 6(3) BUT SIR WORDING USED IN RESPECTIVE RULE IS "EXEMPTED SERVICE " NOT SERVICE PROVIDED IN REVERSE CHARGE MECHANISM , CAN WE SAY EXEMPTED SERVICE = SERVICE IN 100% REVERSE CHARGE

Shreyas Sangoi

Shreyas Sangoi (Expert)

30 May 2015 Exempted service includes "taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken".

GTA service falls under that bracket as 75%/70% is exempted with restriction on credit. Accordingly, GTA service will be considered as exempted service under CCR.

Ishant Gulati

Ishant Gulati (Querist)

30 May 2015 Got it your reply sir, Thanks alot. Because of your type of expert on caclubindia we are able to solve our critical queries easily.

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