Credit utilisation

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R KALYANA SUNDARAM (Querist)

23 April 2014 Dear Sir,

We are the manufacturing company. we have service tax credit of more than 10 Lakhs.
Q1. Can we adjust against payment of GTA.
If yes, please provide the cenvat credit rules.

Q2. If GTA is reverse charge mechanism, what is the notification number saying that it is reverse charge mechanism.

I need urgently to make payment

Thanks
R Kalyana Sundaram

arihant kumar jain

arihant kumar jain (Expert)

23 April 2014 Boss You have to pay service tax on GTA by Challan only
answer1:- no
answer 2-Rule 2(1)(d)(v) of Service Tax Rules, 1994
(“Rules”) introduced by Notification No.
35/2004 - ST, dated 3.12.04

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KUMAR trp707@gmail.com

KUMAR trp707@gmail.com (Expert)

23 April 2014 Ans to Q 1
"Service Tax payable by the consignor or consignee an transportation of goods by road cannot be paid through credit amount"
Cenvat credit Rule 3(4)

CenVat credit not allowed for purely payment of GTA purpose.
CBEC Master circular No 97/8/2007-st dated 23-08-2007
case laws: Soundaraja Mills Ltd VS CCE(ST) Madurai
Evershine Air Travels (P) Ltd VS CCEE Trichy

Ans to Q 2 Notification No 30/2012-st

any clarity to ask your Range Superintendent before take Cenvat Credit

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R KALYANA SUNDARAM

R KALYANA SUNDARAM (Querist)

24 April 2014 Thank you sir. Now we are very clear about rule.

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