Set off of Cenvat Credit

This query is : Resolved

mohan rao (Querist)
Follow

30 March 2009 Dear Sir,

One of My Client manfacturing seeds and the goods are not excisable and the company purchasing capital items on which excise duty is paying

There is no Outflow of Excise and Customs duty payble from the company

The Company is paying Service Tax under GTA

Shall we offset the Cenvat Credit on Excise duty is to Service Tax payble on GTA

Note : Service Receiver has to pay the Service Tax on GTA

Thanking you

Pravin Nemad-CWA

Pravin Nemad-CWA (Expert)
Follow

30 March 2009 No U can not, this is because, In service tax rule, it is clearly mention that, GTA payment should be dont throu PLA & u are not allowed to utilise Crdit available in Cenvat.