s.tax.claims

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Khushal Parekh

finance and taxes authority

36 Points Posted on 08 June 2009

We have taken registretion for S.Tax ,for making payment of s.tax against, transportation paid,as per our understanding we need to pay s.tax on 25%of toal freight on prevailing tax rate,and we can adjust against our paid s.taxes to telephons,as bank charges,rent,commisions etc.

Wish to know our oppinion is right or wrong,as sum people told that when we are calculating transport cost of 25%,we can't claim of refund or adjust the same against payments.

Expacting coopretion to understand properly,lows norms.

Replies (2)

Vibhash Kumar Sah

63 Points Posted on 08 June 2009

As u r paying service tax on Goods Transport Agency (GTA) and assuming it is applicable to u , the clarification to ur queries are:

1. 75% abatement is available on Service Tax on GTA, i.e., the calculation for the Service Tax will be

Freight*25%*applicable Service Tax Rate

2. The payment of Service Tax on GTA is eligible for Input credit .

3. Service Tax on Telephone Bills, Commissions etc. are also in the nature of Input Tax, which can be adjusted while paying output tax. Since Service Tax on GTA is a input Tax, it can not be adjusted with another input Tax. If u r a manufacturer of dutiable goods, adjust these input credit with ur output duty payable.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 09 June 2009

Mr. Vibhash has explained well.

If the ST on freight for every month is paid by the end of the month [ instead of 5th of next month] since credit adjustment is not there, the cenvat credti on the payment is available for the adjustment to pay the central excise duty along with the other services paid for.