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Input tax credit of gta service tax ?

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This query is : Resolved

Anwar Shaikh (Querist)

31 October 2011 Dear experts,

1) Please tell me can we take input tax credit of service tax paid on GTA services.

2) Also tell me can we take Input tax credit of service tax paid on import services on reverse mechanism ?

Please refer any case law/ notification/ section/ rule etc.

Pradeep Jain

Pradeep Jain (Expert)

01 November 2011 There is no dispute on taking of credit on inward transportation if you are manufacturer of excisable goods. For outward transportation, three conditions should be fulfilled as per CBEC circualr. These conditions are goods are sold FOR destination, damages during transit is on supplier of goods. Lastly, transaction value should include the transportation charges also. It means that the excise is paid on transportation charges also.
Similarly, credit will be allowed on tax paid on import of service if it is input service for the service recipient.

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