Ritesh (CA Final) (326 Points)
27 December 2008Dear all, please help,
In certain Instances,Service Tax on GTA services is paid by Service Receiver.
Now my query is, Since for Service Receiver, it is an Input Service,can he avail the benefit of Cenvat Credit of Service Tax paid on Such Input service while paying his Excise Duty liability/Output Service tax liability ?
Thanks
Rajat Kedia ACA CS MCOM
(Assistant Manager)
(613 Points)
Replied 27 December 2008
yes , he can do so
Mayank Sharda
(Student)
(53 Points)
Replied 18 February 2009
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 18 February 2009
Credit of GTA is available for all input freight and on outward freight upto the place of removal.
krishna iyer
(Sr.Finance Manager)
(197 Points)
Replied 23 February 2009
Dear Sir,
Supplier of goods arranges GTA and Supplier pays transporation plus service tax to the GTA.
The buyer of goods reimburses the transportation plus services tax to the supplier. For this the supplier raises a bills for reimbursement attaching therewith the bill of GTA.
In this case, buyer is not paying service tax to the Dept. (GTA is paying the same).,
Can buyer avail cenvat credit, since he has actually taken the burden , by way of reimb to Supplier.
krishna iyer
(Sr.Finance Manager)
(197 Points)
Replied 23 February 2009
Dear Sir,
Supplier of goods arranges GTA and Supplier pays transporation plus service tax to the GTA.
The buyer of goods reimburses the transportation plus services tax to the supplier. For this the supplier raises a bills for reimbursement attaching therewith the bill of GTA.
In this case, buyer is not paying service tax to the Dept. (GTA is paying the same).,
Can buyer avail cenvat credit, since he has actually taken the burden , by way of reimb to Supplier.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 23 February 2009
Buyer can avail the service tax, with reimbursement note. But, why dont you ask the GTA to bill to the buyer? That is simpler and will avoid litigation.
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