Input credit on gta

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Nikhil Jain

Nikhil Jain (Querist)
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19 January 2015 Hi,
Is Input Credit available on Service tax Paid on GTA under Reverse Charge?.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 January 2015 Yes input credit is available for service tax paid under RCM on GTA.

Nikhil Jain

Nikhil Jain (Querist)
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20 January 2015 Thanks Sir.

Can you tell me relevant section for the same .

Why Service Tax on Rent a Cab under RCM is not available for Cenvat Credit .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 January 2015 Please see the link.
https://taxguru.in/service-tax/cenvat-credit-gta-service-dilemma-solved.html

W.e.f. 01-04-2011, the Central Government has amended the definition of ‘input service’ under Rule 2(l) of Cenvat Credit Rules, 2004 vide Notification No. 3/2011 – CE(NT) dated 01-03-2011 and again vide Notification No. 18/2012 – CE(NT) dated 17-03-2012 (w.e.f. 01-04-2012). The effect of the amendment is that rent-a-cab service has been specifically excluded from the definition of ‘input service’ and hence cenvat credit is generally not available. Cenvat Credit is available only when rent a cab service could be related to a motor vehicle which is capital good for them. In other words, when a motor vehicle designed to carry passengers including their chassis, registered in the name of provider of service, when used for provided output service of- (i) transportation of passengers; or (ii) renting of such motor vehicle; or (iii) imparting motor driving skills, then cenvat credit can be availed.

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