We have amend the registration for GTA service in Dec-15. Can we pay off the service tax under GTA and claim the Cenvat for the period of Apr-Dec' 2015
04 February 2016
Service Tax Paid on GTA services is not Input Service as per Rule 2(l) of CENVAT Credit Rules 2004. This tax is further paid under the Reverse Charge Mechanism on abated value. Therefore the tax paid is not available as input credit.
If service tax liability for GTA is paid then cenvat credit of the same can be availed by the assessee. This is in accordance with Provision 1 to sub rule 7 of Rule 4 of Cenvat credit rules, 2004
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