30 December 2009
under reverse charge, payment of service tax has to be made in cash only and can not utilize credit.but this amount paid can be availed as credit and can be utilised in paying excise duty.
We do pay service tax under reverse charge through Bank only and do not utilise cenvat credit. But my question is whether we are eligibile to take Cenvat Credit of Service tax paid under input GTA services on behalf of transporter availing benefit of abatement?
31 December 2009
Please note that now 75% of value of taxable GTA service is 'EXEMPT' and it is not an 'abatement'. If you are paying service tax on input GTA service, in my opinion, you can use this amount to pay excise duty.
CAclubindia
