Service tax credit

Queries 589 views 4 replies

Arun Agarwal

GM (Finance)

29 Points Joined April 2009

Our Company is in business of Electricity Generation, which is exempt from levy of Service Tax and Excise Duty. But we are paying excise duty of input goods and service tax on GTA. (as our raw material comes through road transport)

Now, our query is:

1. Can we take credit of Service Tax paid on Input Services against Service tax payable on GTA.

2. Do the abatement of 75% will be applicable, if we take the credit as mentioned in point 1 above.

3. If service tax credit is not allowed, can we go for service tax refund.

Thanks in advance.

Replies (4)

pradeep mukim

chartered accountant

35 Points Joined July 2009

As far as my knowledge is concerned ,No cenvat is allowed where final product manufactured is not liable to excise duty hence In this case as electricity generation is not liable to duty of excise there is no question of taking cenvat credit of any kind. Further in my opinion if ur company is person liable to pay service tax on GTA service tn it should pay service tax after claiming 75% abatement & no credit or refund would be allowed of such payment by you.

kishore

asst manager -accts

135 Points Joined December 2009

whether they claim refund

pradeep mukim

chartered accountant

35 Points Joined July 2009

As the co is not eligible of Cenvat credit question of refund should not arise. They are just liable to pay service tax on input GTA service neither Cenvat nor refund of any amt would be allowed .