Cenvat credit on gta service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 Suppoose A sold goods worth Rs.X/- to B. C is GTA. A pays Rs.10000/- to C(GTA) & deposit tax @ 3.09% on Rs.10000/- to Govt. But now A issues Debit note worth Rs.10309/- for transport & mentions thereat that B is not liable for Service tax. But ultimately B bears the service tax. So who can claim credit for such service tac whethe A or B?

Rupesh Jain

Rupesh Jain (Expert)
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18 June 2013 b can calim servcie tax on freight on inwards goods but it aviablable when a invoice recd from a on which A" servcie tax also to be mention

Ganeshbabu K

Ganeshbabu K (Expert)
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18 June 2013 1)Please do verify payment terms of transactions..
(i)if A is liable to pay frieght he is liable to discharge GTA servicetax and can take credit on service tax paid through GAR-7(irrespective of whether A paid to C or B paid to C)
(ii)vice versa

2)So if A is liable to discharge service tax B is not entitled to re-imbursement service tax amount to A.you can refuse..to pay that service tax payment..

So your B liability depends on payment terms irrespective of fact that who paid to frieght agent

Thanks & regards
Ganesh babu

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2013 But while issuing debit note to b, Service tax amount & freight amount is not shown separately.

Ganeshbabu K

Ganeshbabu K (Expert)
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22 June 2013 What are payment terms?

who is responsible for payment for freight?

only that person is considered as service receiver and he will be liable to pay GTA serice tax. and such servicer receiver is entitled to take credit on service tax paid on GTA service

LIability to discharge GTA servicetax does not change on any other way..

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)
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22 June 2013 ExAMPLE: you are making sales ..if customer is responsible for payment of frieght..but you have paid frieght and collected this amount by showing in invoice...

ans: but here as customer is liable to pay frieght HENCE HE IS LIABLE TO DISCHARGE GTA LIABILITY.

even though you have collected amount by showing in invoice which is paid on behalf of him you are not liable to discharge service tax liability..here customer is considered as service receiver and customer is liable to discharge GTA

Thanks & regards
Ganesh babu k

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