Cenvat credit on abatement in reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2014 When the service tax is paid on inward freight GTA under reverse charge mechanism taking the benefit of abatement i.e. on abated value of 25% then Can Cenvat credit of the same be taken ? Can cenvat credit be taken of the above service tax paid ?

CA DEEPAK S K

CA DEEPAK S K (Expert)
Follow

27 May 2014 In accordance with Not No 26/2012 So No 7 on GTA services abated value of 25% is available and there is condition that the service provider should not have used credits on any inputs for providing such taxable service, and in accordance with Not No 30/2012 Sl No 2 the receiver is liable to pay tax so I guess the receiver can take credit by paying under reverse charge.

I would request other experts to update and clarify this point further.

Rupesh Jain

Rupesh Jain (Expert)
Follow

30 May 2014 if you are manufacturer and having excise duty registration then you can take credit the service tax paid on freight inwards. paid under the reverse charge mechanism.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok