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)
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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)
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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.

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