My Query is ...
If a company pay service tax on GTA Service under reverse charge after aviling abatement....
Can Company can take Credit of service tax paid..????
because the condition with abatement is provider of service can not take credit of service tax paid on input, input service, and capital goods used for providing output services.
but company is service receiver and paying service tax under reverse charge..
pls suggest me..
thanks in advance.
Dear Ritu,
A company can take input credit on service tax paid on GTA services.
The given condition is also applicable. ie if a company pays ST on Frieght Charges on purchase of material, than that input credit a company can avail. But If a company pays ST n Frieght charges on sales of goods/material then that ST we can't take Input credit.
Example:
1. ABC ltd paid 10000/- to ram kumar for the freight charges on purchase of goods From sellers warehouse to factory/ware house of ABC ltd. Then ST payable is 10000*0.25*12.36% (Input credit of service tax available)
2. ABC ltd paid 10000/- to rames kumar for the freight charges on sale of goods from factory/ware house of ABC ltd to buyers place then ST payable is 10000*0.25*12.36% (Input credit of service tax available)
Sagar what about the conditiong for availing ababement???
Condition for availing abatment on Frieght charges paid is
Dear Ritu,
In my view, if the company is liable to pay freight, then as per notificaiton no. 30/2012 (reverse charge), the company is liable to pay 100% of service tax @ 12.36% and the abatement available vide notification no. 26/2012 is not available as it is available only to service provider.
Once the company pays service tax, it can claim credit for the same on the basis of GAR-7 challan.
Dear Sir,
As per 26/2012 Notification, we have to pay only 25% of the Service tax
https://www.simpletaxindia.net/2012/06/abatement-rate-in-services-tax-amended.html
CAclubindia
