Regarding availment of service tax credit

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CA munna singh (Querist)
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28 November 2012 whether service tax credit available to registered assessee when it makes payment to GTA after availing abatement facility of 75%.

Regards ,

Munna singh.

Viral Vora

Viral Vora (Expert)
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28 November 2012 No once you claim abatement then no cenvat credit should be taken. except in case of Construction Service

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 November 2012 In case of reverse charge on GTA, CENVAT credit is available.

Viral Vora

Viral Vora (Expert)
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28 November 2012 Entry No. 7 prohibits availment of credit on inputs, capital goods and input services. Notification No. 26/2012 dt 20-06-2012

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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28 November 2012 Agree with Expert, Under reverse charge service receiver can take cenvat credit even after abatement better to take a declaration from the transporter( Service provider) though not legally required from July,2012.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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28 November 2012 Dear Mr. Vora,

Entry no. 7 of the said notification has no implication when service tax is paid under reverse charge. it is applicable for service provider making payment of service tax.If GTA was liable for service tax then it would not be eligible for credit of Cenvat.
The condition is not for service receiver liable for service tax under reverse charge where he is not takinf any credit while paying service tax on GTA

CA munna singh

CA munna singh (Querist)
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28 November 2012 but in my case assessee is a manufacturing concern and making payment to GTA after availing abatement facility of 75%.

in this case

whether assessee (manufacturing concern) is eligible for taking credit of such service tax payment?

Regards,

MUnna singh.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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28 November 2012 Yes, If the company is paying service tax inward freight then it will be eligible for cenvat credit.
First the company will have to pay service tax and thereafter it can get credit of such amount against payment of service tax/excise duty

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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28 November 2012 Adding to the above cenvat credit by manufacturer ( service receiver ) can be taken on GTA
1.Inward transportation of Inputs and capital goods,

2.Outward transportation upto the place of removal.

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CA munna singh

CA munna singh (Querist)
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21 December 2012 when a manufacturer (service receiver) pays service tax on payment of freight to GTA on outward transportation.

whether service tax credit available to manufacturer in this case.

Regards,

Munna singh.

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