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Service tax on gts by availing abatement

This query is : Resolved 

03 August 2014 Dear Sir,

Say a company has availed service of goods transporter & pays service tax by claiming 75% abatement as per service tax rules. Here can a private company take input of service tax paid on abated value on GTS?

For E.G.,
Rs. 5000/ charged by GTS
25% of 5,000/- comes to 1,250/-
service tax @ 12.36% comes to Rs. 154.50/-
can a private company avail as input? service tax paid as per above transaction.

03 August 2014 Yes the private company can take credit of the input service ta paid under reverse charge.


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