Gta service credit

This query is : Resolved

CA Anurag Shukla (Querist)
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24 August 2011 If a company hires GTA service both for input of raw material and output for delivery of finished goods to the place of removal i.e depot or sometimes to buyer premises.
My query is whether the company can take credit and if yes then of which input or output service.

Whether the company can take credit of service tax paid by him on the input and output service and if yes or no please advice by the help of decided case law.

CA Ankit Verma

CA Ankit Verma (Expert)
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24 August 2011 The hiring company will have to par Service Tax on behalf of GTA both in case of using his services for input of raw material and output for delivery of finished goods to the place of removal.

He shall have to compulsorily pay ST liability arising due to availing these services through PLA & cannot use opening credit available, to setoff this ST liability.

Hence he shall be able to take credit of ST paid both in case of input of raw material and output for delivery of finished goods to the place of removal.

CA Ankit Verma

CA Ankit Verma (Expert)
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24 August 2011 The hiring company will have to pay Service Tax on behalf of GTA both in case of using his services for input of raw material and output for delivery of finished goods to the place of removal.

He shall have to compulsorily pay ST liability arising due to availing these services through PLA & cannot use opening credit available, to setoff this ST liability.

Hence he shall be able to take credit of ST paid both in case of input of raw material and output for delivery of finished goods to the place of removal.

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