Dear Sir,
My Query: ABC is trading company of Waste Paper ( Non Excisable Product ) and therefore is unregisterd in Excise but registered in Service Tax. ABC Pays Transport Charges and book GTA Liability and Pays also. Now ABC wants to pass on this GTA Liability to its Group Company 'D'( A Manufacturing Company Regsieterd in Excise and Service Tax ). This is to be done by claiming Reimburesement by issuing Debit Notes of Transport Charges and GTA. Group Co. 'D' will reimburese the Transport Charges to ABC and can take the Service Tax Credit of GTA from its Excise Payment.
Can ABC Charge Service Tax ( GTA) on its debit Note and Can 'D' Company take its Credit. Please advise.
CAclubindia
