Gta service tax paid can be taken set off against wct

Queries 955 views 1 replies

My client is a Contractor and having registration under WCT. He paid service tax @ 4.12 on bill charged as a service provider. He is also registerd as a service receipient of GTA, And on the transpportation charges paid Sevice tax @ 2.5 % as a sevice receipiennt.

My query is can he take set off of GTA paid against wct 4.12 %.

eg

His monthly WCT liability comes to Rs 100000/- and for that month his GTA liability come to Rs 20000 and paid GTA Rs 20000. While payment of 4.12 WCT ., can he take set off Rs 20000 and paid Rs 80000/- (100000-20000GTA).

Because as per notification , Contractor under WCT can not eligible for Cenvat on Input only.

But GTA is not Input but it is INPUT SERVICEs.

So please guide me in above situation.

 

 

 

 

Replies (1)
This query is not applicable in the light of the recent amendments made in service tax. However, as far as query is concerned you cannot claim any CENVAT Credit while discharging service tax liability under composition scheme. Kindly update yourself with all the new changes which are effective from 01-07-2012 in relation to construction service and Works Contract service.


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