We are a Service tax regd Goods Transport Agency. We get the goods transported thro' other GTA's who raise their bill with Service tax.
Please tell if we are eligible for full input tax credit since we are charging service tax in our bill to the consignee ?
Yes you are eligible for full credit.
yes you can take full credit.
Based on your query, sorry to say, you are not eligible for input credit.
GTA service is not an output service as per amended definition w.e.f. 01.03.08. Since you are not utilising the input GTA for providing output taxable service, you are not eligible for any credit.
As i undertstand you pay ST to other GTAs and pay ST on services of GTA provided by you. If so you are eleigible for input services credit in full from this year.
Earlier the not.,1/2006 barred ST when payments were made on 25%.
CAclubindia
