goods transport agency
This query is : Resolved
02 August 2010
Whether a manufacturing company is reqd to pay service tax on carriage inward or outward incurred by it?
02 August 2010
U IT IS LIABILITY OF MANUFACTURER TO DEDUCT AND PAY THE SERVICE TAX ON BOTH CARRIAGE OUTWARD& INWARD.BUT HE CAN ONLY AVAIL CENVAT CREDIT OF SERVICE TAX PAID ON INWARD NOT ON OUTWARD.
03 September 2010
The Manufacturer if regd. as a factory or falling under the categories of the entities which are to take the regn. and comply the ST provisions is liable to pay the ST on both Inward & outward GTA.
Further, to add that he is eligible to take the CENVAT credit of the ST Paid by in respect of the GTA inward only as it is a Input service. He can avail the CENVAT Credit of outward transportation only if certain prescribed conditions are satisfied which include inter alia that the ownership of the Goods Cleared from the factory should remain with the seller, the goods in transit should be covered by the Insurance taken by the seller and as per the terms of the PO the seller has to deliver the goods upto the doostep of the purchaser.
In view of the above, it is to advise that kindly keep the records of the Inward & Outward Transportation and have the clear identity of the ST on both Inward & Outward Transportation.
Further, to add that he is eligible to take the CENVAT credit of the ST Paid by in respect of the GTA inward only as it is a Input service. He can avail the CENVAT Credit of outward transportation only if certain prescribed conditions are satisfied which include inter alia that the ownership of the Goods Cleared from the factory should remain with the seller, the goods in transit should be covered by the Insurance taken by the seller and as per the terms of the PO the seller has to deliver the goods upto the doostep of the purchaser.
In view of the above, it is to advise that kindly keep the records of the Inward & Outward Transportation and have the clear identity of the ST on both Inward & Outward Transportation.
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
- About TDS & Income Tax
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- Not able to file ITR
- Rental income of jointly held property
- Regarding ITR filing with more value than showing in AIS/TIS
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
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
