INPUT CREDIT OF SERVICE TAX

Dear Sir

As per the clarification by depptt in regard of GTA services is that in case of GTA services, laiblity for the payment of service tax is on the service receiver, so you have to pay service tax.

And if you go thru the rule 3(4) of cenvat credit rule -: i.e.

CENAVT CREDIT CAN BE UTILISED IN THE FOLLOWING PAYMENT

(d) service tax on PAYABLE  any OUTPUT SERVICES.

So if you combined the ABOVE both explanation then you observed that GTA services is actually the OUTPUT SERVICES for transport agency  and INPUT SERVICES for the company .............And at the same time, laiblity for the payment of service tax on GTA is also on the company (Service receiver)

So you CAN'T adjust the CENVAT CREDIT against the payment of GTA service tax.

Hope now you are clear

Input service credit cannot be used to pay for another input service. Therefore the ST on tsorage cannot be used for GTA or vice versa.

A few years back the GTA service was deemed to be an output service at which time the input services could be used to pay for the deemed output service.

URGENT!

please tell me if input tax credit can be availed on service tax paid for LC Discounted? if yes, what is the % of credit that can be availed?

URGENT!

please tell me if input tax credit can be availed on service tax paid for LC Discounted? if yes, what is the % of credit that can be availed?

NEHA

Yes you can claim the credt of service tax paid on LC discount as it covers under "BANKING & OTHER FINANCIAL SERVICES "

And regarding % whatever charged by bank you should claim the same.

hey thanks sorabh..

no my doubt is that - can we take credit on the whole st paid or 1/3rd amt. or somrthing like that?

Neha

There shuld be no doubts regarding that point. As whatever the service tax amount charged by service provider , service receiver can claim the credit os such service tax amount.................

Hope now your doubt has been sett off.

ya thanks

you have been of great help