Cenvat credit taken or not

Dear all, one of my client providing services of transport of goods by rail and he raised service tax abatement invoices . Can he take credit on input services or not ? please explain 

Replies (11)

No, When Service tax with abatement of 70% on transportation of Goods by Rail is charged CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, is not available under the provisions of the CENVAT Credit Rules, 2004

Hi Pawan,

To me your client is entitled to take credit.
Notification no 26/2012 get amended by Finance Act 2016.

It allow you to take credit of input services.

Yes, Mr. Sunil is correct. As per changes incorporated in recent budget: vide F. No. 334/8/2016-TRU

"At present, service tax is payable on 30% of the value of service of transport of goods by rail without cenvat credit on inputs, input services and capital goods. Thus, abatement of 70% is presently available in respect of the said service. It is now proposed to continue with the same level of abatement with cenvat credit of input services for transport of goods by rail (other than “transport of goods in containers by rail by any person other than Indian Railway”). A reduced abatement rate of 60% with credit of input services is being prescribed for transport of goods in containers by rail by any person other than Indian Railway. (Existing entry at S.No. 2 and new entry at S. No. 2A of notification No. 26/2012-ST refers)"

Thanks for the clarification.

Services of transport of goods by Indian Railway shall be liable to

Service Tax @ 4.5% [with SBC + KKC] after abatement of 70%

allowing CENVAT credit of input services

w.e.f. 01-04-2016

and effect of KKC

from 01-06-2016

Regards

26/2012-ST by Finance Act 2016, I agree with both the above Respondents

Under GTA Service, Service provider (Transporter) may charge service tax for individuals.Could Service provoider is eligible to avail input credit on telephone charges, rent paid etc.

V.Sathiyanaryanan

Under GTA Service, Service provider (Transporter) may charge service tax for individuals.Could Service provoider is eligible to avail input credit on telephone charges, rent paid etc.

V.Sathiyanaryanan

@ Sathyanarayanan:

Yes, if abatement rate not charged, but full ST  @ 15% collected.

Thank u sunil

thank u sir

 

Most welcome. Thanks to all for knowledge sharing.

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