Service tax on GTA

Mitali Agarwal (Company Secretary) (638 Points)

22 January 2010  

An 100%EOU is paying service tax on GTA @ 25%.

 

Since the Company is availing abatement of tax by 75%, so the Deptt. has not allowed CENVAT Credit on 25% tax paid.

 

1- Is the stand of Deptt. correct?

 

2- And if it is correct, then whether there is any option by which we can claim whole amount of ST paid on GTA?