Service tax input on gts by availing 75% abatement

Dear Sir, Say a company has availed service of goods transporter & pays service tax by claiming 75% abatement as per service tax rules. Here can a private company take input of service tax paid on abated value on GTS?

For E.G., Rs. 5000/ charged by GTS 25% of 5,000/- comes to 1,250/- service tax @ 12.36% comes to Rs. 154.50/- can a private company avail as input? service tax paid as per above transaction.

Replies (5)
Yups as per CCR Rules 2004

Can take inpt only for input transportation i.e., if paid to GTA for receiving goods. If GTA service avail for delivery of goods to customer then it input not available.

Agreed with Anoop...

Yes, Company can take this credit

Dear sir,

If it inward transportation the company can avail such input credit. whereas if the same is outward transportation the same is litigatable issue, but however if the terms of the contract of delivery is on FOB basis i.e if the manufacturer has the responsibility to deliver goods at the buyers premises the same should be treated as "Place of Removal" and not the sellers depot/factory. This clarity is given in circular as well. 

Further, if you decide to avail such credit, please intimate to your superintendent of range in advance on letter head and then start avail such credit. so that he cannot dispute in future during the time of audit. 

Thanks.

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