PRIYANKA (accountant) (77 Points)
09 January 2014Dear sir,
suppose one of a manufacturing company rececived transport services from transport agency. paid service tax 25 % on transport bill amount . this transport service use for transport of good from the place of removal to the place of delivery .
my quation is that it is an input services ? can taken a cenvat credit on service tax ? please give answer with rule
Priyanka
CMA Student
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
it is not input service according to definition of input service givan in cenvat credit rules........... transport service used upto place of removal is input service
PRIYANKA
(accountant)
(77 Points)
Replied 09 January 2014
Thanks for reply me.....
so it is an output services ............ ? so either we paid 25% service tax so we can get a cenvat credit ?
please give me reply.............
Priyanka
CMA student
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
it is not output service....... whether ur business is of transportation?????????
PRIYANKA
(accountant)
(77 Points)
Replied 09 January 2014
Look......
eg. xyz ltd. manufacturing company . received transport service from PQR transport agency for delivery of material to the place of our customer. when deal with customer FOR is destination we include freight charges in assessable value for excise duty calculating...... & then we paid service tax on 25 % on bill amount. so we can avail crdit or not........
Priyanka
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
on what basis u paid service tax on 25% bill amt......under which rule/ sec/ notifiaction.... can u pls clarify me?????
PRIYANKA
(accountant)
(77 Points)
Replied 09 January 2014
A10.2 A Service Receiver under
Section 68(2)
A10.4 A Service Receiver under
partial reverse charge under proviso
to Section 68(2)
A10.6 If covered by A10.4 above,
then the percentage of Service Tax
Payable as Recipient of Service ie 100 %
Jeetendra Goyal
(Student CA Final )
(175 Points)
Replied 09 January 2014
u have paid service tax under reverse charge for receiving GTA service........under this case u have to pay ser tax 100% ..not 25%..... but credit of gta service used beyond place of removal is not available..... you can avial only up to place of removal... and other important thing is that u have to first pay in cash service tax under revese charge then only u can avial credit...... and document for availing credit is service tax challan....
Manoj Agarwal
(Service Tax Consultant Rourkela Service)
(3456 Points)
Replied 09 January 2014
Dear Priyanka, You can avail abatement of 75% under N/N-26/2012 and pay service tax on 25% value of freight. However, you should take a declaration from the transporter that they have not availed any Cenvat Credit for such service.
You may also avail Cenvat Credit for outward freight subject to certain conditions when you are selling goods FOR at your customers premises and you bear the risk during the transit period and freight is included in the AV.
For more details on service tax on GTA, kindly read my article as linked below, which you can also read in R.K. Jain's Service Tax Review STR issue dated 15-01-2014.
https://www.simpletaxindia.net/2013/11/service-tax-on-good-transport-agency.html
PRIYANKA
(accountant)
(77 Points)
Replied 13 January 2014
Thank you Manoj Sir.............................
PRIYANKA
(accountant)
(77 Points)
Replied 13 January 2014
Please give me Detail about taken a credit on comission ...........
I m working in manufacturing company . company paid comission to one of agency who represent our bill to customer & maintain all matter about payment........ he give there bill including service tax .... so our company taken a credit of that service tax...........
IT IS RIGHT OR WRONG ? Please clarify me.........
Priyanka
CMA student
Manoj Agarwal
(Service Tax Consultant Rourkela Service)
(3456 Points)
Replied 13 January 2014
Dear Priyanka,
Normally, courts have held that Pre-Removal sales commission is eligible for Cenvat Credit and not Post-removal. So, if Commission on sales is given for introduction of new customer, for development of new markets, sales promotion, advertisement, etc. then the Cenvat credit may be allowed by in your case the commission is paid for collection which is clearly a post removal activity and Cenvat may be disallowed by the department.
PRIYANKA
(accountant)
(77 Points)
Replied 13 January 2014
Sir our case is Pre removal Or Post Removal...........
Priyanka
PRIYANKA
(accountant)
(77 Points)
Replied 13 January 2014
Thank you sir.............
In Service tax audit this quation is arises........
so from last two year our company get credit on that so can we do ?
Priyanka
PRIYANKA
(accountant)
(77 Points)
Replied 13 January 2014
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