Goods Transportation Service

This query is : Resolved

vijay (Querist)
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06 April 2008 Dear Sir,
My client is a Limited co. It is a manufacturing unit.
We paid transportation for receiving raw material and also for supplying finished goods.
so on both we have to pay service tax.

Can we take the credit of service tax we paid on Telephone, Professional service etc.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 April 2008 You can take credit of service Tax paid through the bills raised by the supplier of service on you.

CA Praveen Chopra

CA Praveen Chopra (Expert)
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07 April 2008 Mr.S.Srinivasaraghvan,services provided by good transport agency has already been struck out from the definition of output service so in my opinion, GTA cann`t take credit of input service.If u are not satisfied with my point,pls revert back to me with detail

Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 April 2008 Mr. Chopra is correct. Cenvat Credit can not be utilised for payment of service tax, if tax is payable by the consigner/consignee.

Since you are a manufacturing co., you can utilise the service tax paid on inward transportation of raw material, and other input services, for payment of excise duty.

Considering the expertise of experts on the forum, it is advisable to judge the opinion before acting upon.

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