Dear All,
We are a partnership concern (involved in manufacturing goods), receiving services of transportation from transport companies. Under reverse charge mechanism we are liable to pay service tax on services received by us, therefore registered in service tax as a “Goods Transport Agency”.
We are depositing 25 % service tax on transport charges paid by us for both inputs and outputs from our manufacturing unit, under abatement of service tax vide Notn No 26/2012ST eff 1.7.12.
This abatement is allowed under the condition that, ”the service provider i.e. the transporter, has not availed cenvat credit on the inputs, capital goods and input services, used for providing the input service by the transporter”
Therefore the transporter has to certify that they are not taking any cenvat credit on the inputs, capital goods and input services.
Our query is that whose responsibility it is to get this certificate from transporter? We have written to all transport companies we are working with, but are not getting the certificate from all of them. Most transporters are not taking cenvat credit, but refuse to give any such certificate due to lack of understanding of this concept.
Also, does this type of certificate have to be obtained every year from the transporter? Thank you. Nitin
CAclubindia
