Service tax on GTA

Ajay (N.A.) (48 Points)

28 February 2009  


We are manufacturing company and are also liable to pay service tax on freight on inwards and outwards service. We have some doubt regarding availing of cenvat credit and other procedure issues which are as follows:-
1 We are paying service tax on freight of input material for transportation. Our transporter raised invoice against freight of raw material. We have own mines of  raw material from where transporter lifted the raw material and unloaded at our factory. Our transporter is also mine owner they have also supplied raw material from their mine and raised invoice against material plus freight but do not issued consignment note. The question whether consignment notes is mandatory for GTA.Can we treat as other mines owner as GTA if they are suppler of raw material and transportation work been done by them in their own vehicle or hiring other transporter vehicles.
2 We have raised the invoice to our customer for sale of against final product. We have raised Bill Receivable against sale of final product to the our bank and bank has paid realized  from the customer after convene of customer but  bank has credited the payment after charging discount and other charges which inclusive service tax charges. Can we avail the cenvat credit on this amount service tax charged by bank on bank charges. What is possibility regarding this issue either it is output service or input service.But this service related to directly to our final product sale.So it should treated as input services or output services.
3 In case of lot of small value of inventory supply  by vendor than we do not know and do not approach to transport/ supplier due to small amount freight or non regular of transporter from supplier and we have paid service tax on freight and party also paid the service tax on freight  in this circumstance what is our liability or procedure.
4 When some time our supplier of supply the inventory through tempo/ other (rixa) than it is covered in GTA category or not.
5 We have also received raw material through import.We have paid service tax on freight amount to India territory  to our factory.But our cargo handling agency freight paid to freight forwarder of other country for material shipped from other country to our Indian custom ports and  same amount reimburse by us. As per definition of Rule 2 (d) (iv) we are liable to pay service tax on this ocean freight amount.