Cenvat credit available or not

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Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2016 service tax paid under RCM on transporation of goods , if transporter not charged service tax on his bill service tax and CHA paid suo moto service tax after abatement I.E 30% of service tax whether CHA is eligible to take cenvat credit after payment of service tax on basis of GAR -7, please relply this question.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 April 2016 You can take can at credit of GTA service only if.. It has direct or indirect relation with the providing of output services or and manufacturing of exciseble goods

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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24 April 2016 Payments made for GTA under RCM after availing abatement is not eligible for CENVAT Credit. The abated value is available as per Notification 26/2012 to persons if "CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004." Notification 30/2012 has confirmed that 100% gTA tax has to be paid by the service recipient.

Reading these two notifications together, it is apparent that no CENVAT Credit is available on GTA service tax payment.

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