Service tax paid can be set off in gta or not?

Sir,

As a Service Receiver from GTA. they areliable to pay Service Tax after adjustment of Abatement. 

Should the Service Receiver can set off the Service Tax paid for the services received from these agencies or not?

The following is the list in which they have received services.

Should they eligible to set off the ST paid in the GTA payable.

1. Professional Fees paid for L/C Documentation

2. Professional Fees paid for Forex Service

3. Professional Fees paid to Statutory Auditors.

4. Credit rating services

5. Domain Services (AMC)

6. Committed Service Charges paid to National Bulk Handling Corporation (NBHC) for Warehouse Loan

7. Shipping & Forwarding Charges paid to Consultancy

8. Courier Services (Sample sent to Foreign & Domestic Buyers for getting orders)

9. ISO Certification fees (Surveillance Fees paid)

Regards,

M. Arunachalam

Replies (1)

A Service Recipient is liable to pay tax under section 68(2) read with notification no. 30/2012 which is populary known as reverse charge. 

A Service Recipient is not allowed to utilize Cenvat Credit for payment of service tax on reverse charge. So, every service recipient has to pay service tax though GAR-7 Challan. However, subject to other conditions, if a service receiver is a provider of output service, he can take credit of service tax paid though GAR -7 under reverse charge, immediately after the payment on the basis of receipted GAR-7 Challan. The Cenvat Credit availed on above mentioned services can also be utilized against the tax payable on output services.

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