Gta service tax paid can be taken set off against wct

TEJAS SHAH (PROPRIETOR) (34 Points)

12 July 2012  

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.