Cenvat credit on gta paid
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2016
Dear Sir,
we are working on the basis of job work manufacturer for some oil companies like BPCL
We are agreeing transporter for transfer of material form our factory to oil companies depots.
We have added this transportation cost in our job costing means we are not charging the same separately in our sales invoice.
We are making payment to Transporter and paying RCM - GTA on these transporter invoices. so if we can take cenvat credit of this RCM payment, Please advice.
Thanks & Regards,
Sanjay Shinde.
we are working on the basis of job work manufacturer for some oil companies like BPCL
We are agreeing transporter for transfer of material form our factory to oil companies depots.
We have added this transportation cost in our job costing means we are not charging the same separately in our sales invoice.
We are making payment to Transporter and paying RCM - GTA on these transporter invoices. so if we can take cenvat credit of this RCM payment, Please advice.
Thanks & Regards,
Sanjay Shinde.
CA R SEETHARAMAN
(Expert)
14 September 2016
You will not be paying any excise duty on this material to claim cenvat credit. It is only the oil companies can claim cenvat credit on excise duty paid. They are only liable to pay service tax under RCM if transportation charges is paid by them.
No service tax payable if transportation is arranged through transport contractors who don't issue consignment note.
No service tax payable if transportation is arranged through transport contractors who don't issue consignment note.
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