Service tax cenvat

Queries 680 views 2 replies

We are a authorised car dealer. When principal co. sends us vehicle it pays freight to transporter and finally raise the bill to us. Can we take the cenvat credit on service tax on such transporting bill???

Replies (2)

if you are paying service tax under reverse mechanism/ receipent og GTA services, then you are eligible, otherwise not.

 

to avail cenvat credit, you have to establish that such GTA services are part of input services, but in your case cars are sold on payment of VAT only, you are neither charging ED nor service tax on sale of cars, so these services does not qualify as input service for you.

We are also a authorised service station providing service to cars .in that case can we utlise cenvat


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