Input credit on GTA Service
This query is : Open
Virendra Gupta
(Querist)
15 September 2016
Hello Everyone,
Please help me out for resolving my following queries.
can service receiver eligible to take cenvat credit on GTA service under RCM method.
please give ur suggestion with documentary evidence.
Thanks,
Rajannaidu
(Expert)
15 September 2016
yes, the cenvat credit of GTA service is available to a service recipient even though the service tax paid under RCM after claiming abatement of 70%
Rule :
The Cenvat Credit Rules 2004, define input service. According to Rule 2 (l), input service means any service:
i) used by a provider of taxable service for providing an output service; or
(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal,
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;
Rule :
The Cenvat Credit Rules 2004, define input service. According to Rule 2 (l), input service means any service:
i) used by a provider of taxable service for providing an output service; or
(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal,
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;
CA SAGAR M. AHUJA
(Expert)
15 September 2016
Consignor/Consignee will be eligible for Cenvat credit if the services falls under the definition of 'input services' as defined in rule 2(1) of Cenvat Credit Rules,2004
The GAR-7 challan by which tax is paid will be valid document to avail Cenvat credit of GTA services
It is confirmed in Para 2.4 of CBE&C circular No. 97/8/2007-ST dated 23/08/2007 that assesseee can avail Cenvat credit of Service tax paid on inward transportation of input and capital goods (but not for outward transport).
As per Rule 9(1)(e) of Cenvat Credit Rules, GAR-7 challan by which the service receiver has paid service tax is a valid document for availment of Cenvat credit.
Thanks.
The GAR-7 challan by which tax is paid will be valid document to avail Cenvat credit of GTA services
It is confirmed in Para 2.4 of CBE&C circular No. 97/8/2007-ST dated 23/08/2007 that assesseee can avail Cenvat credit of Service tax paid on inward transportation of input and capital goods (but not for outward transport).
As per Rule 9(1)(e) of Cenvat Credit Rules, GAR-7 challan by which the service receiver has paid service tax is a valid document for availment of Cenvat credit.
Thanks.
Virendra Gupta
(Querist)
17 September 2016
Thanks so much Sir's for your valuable feedback...
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