Cenvat credit on transportation of rail & road
This query is : Resolved
07 August 2014
Dear Sir,
We are the Manufacturers of Cement Products, One of the Transporter Send the Material trough Train. He Collect the Service Tax Amount in His Bill. The Transportation related to Stock Transfer.
My doubt is " If Transporter collect the Service Tax amount on Transportation of rail/Road from the Service Receipt,Then the Service that S.tax amount Can be eligible for Cenvat Credit or Not.
Please solve my problem.
We are the Manufacturers of Cement Products, One of the Transporter Send the Material trough Train. He Collect the Service Tax Amount in His Bill. The Transportation related to Stock Transfer.
My doubt is " If Transporter collect the Service Tax amount on Transportation of rail/Road from the Service Receipt,Then the Service that S.tax amount Can be eligible for Cenvat Credit or Not.
Please solve my problem.
07 August 2014
Dear Sir
1.There is no reverse charge on transporation of goods by rail .The service tax collected by the service provider is allowed as cenvat credit to service receiver i.e. you.
2.Though there is reverse charge in case of transporation of goods where 100% service tax is required to be paid by service recipent.A recent judgement has allowed that even where the liability to pay service tax was of service receiver under reverse charge ,but the same has been paid by service provider,then the service receiver shall not be asked to pay the service tax again.So in your case even if transporter collects the Service tax from you,then also the service tax amount is eligible for cenvat credit.
Case law:Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM]
1.There is no reverse charge on transporation of goods by rail .The service tax collected by the service provider is allowed as cenvat credit to service receiver i.e. you.
2.Though there is reverse charge in case of transporation of goods where 100% service tax is required to be paid by service recipent.A recent judgement has allowed that even where the liability to pay service tax was of service receiver under reverse charge ,but the same has been paid by service provider,then the service receiver shall not be asked to pay the service tax again.So in your case even if transporter collects the Service tax from you,then also the service tax amount is eligible for cenvat credit.
Case law:Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM]
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- NRI starting business in India
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- Filling ITR - U
- Form 140 tds
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
