Service tax input credit for man power supply
This query is : Resolved
Kumaaravel.
(Querist)
08 October 2009
Dear Sir,
We are running a packing material industry in hosur. In our case we supply man power to done packing works at vendor site. for that we are come under man power supply in service for that we have to pay service tax. and we are paying GTA also.
in our case can we adjust our GTA credit on servie tax payable on man power supply.
We are running a packing material industry in hosur. In our case we supply man power to done packing works at vendor site. for that we are come under man power supply in service for that we have to pay service tax. and we are paying GTA also.
in our case can we adjust our GTA credit on servie tax payable on man power supply.
ANIL JANGID
(Expert)
09 October 2009
IN CASE YOUR ANNUAL BILLING BELOW 10 LACS NO NEED TO PAY SERVICE TEX
Kumaaravel.
(Querist)
16 October 2009
I need clarification that,
i am paying service tax on GTA, that tax credit may i utilised for other Service tax payables.
i am paying service tax on GTA, that tax credit may i utilised for other Service tax payables.
21 October 2009
Mr Kumaaravel,
First of all you have to clarify the transaction, as you have mentioned that you are running a packing material industry and sending your personnel at vendors' place.
Are you splitting the billing in to two parts ie material cost and service charges ? Is Excise Duty is applicable ?
Anyway, Service Tax paid on GTA have to be paid on Freight Inwards & Freight Outward. You can take credit of Service Tax paid on GTA - Freight Inwards while discharging your liability of Service Tax / Excise Duty.However there are some restrictions on crdit of service tax GTA - Freight Outwards.
First of all you have to clarify the transaction, as you have mentioned that you are running a packing material industry and sending your personnel at vendors' place.
Are you splitting the billing in to two parts ie material cost and service charges ? Is Excise Duty is applicable ?
Anyway, Service Tax paid on GTA have to be paid on Freight Inwards & Freight Outward. You can take credit of Service Tax paid on GTA - Freight Inwards while discharging your liability of Service Tax / Excise Duty.However there are some restrictions on crdit of service tax GTA - Freight Outwards.
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