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?
There is no bar on availment of credit on GTA input services. The dept officer may not have read the provisions / circulars properly.
Thanks sir for your reply.
Could you plz quote the respective provision/circular, just to prove in front of the officer?
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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