Cenvat credit on inport/trading activity
Govindbhai
(Querist) 24 April 2014
This query is : Resolved
SIR,
WE ARE THE REGISTER DEALER OF CENTRAL EXCISE
AT PRESENT WE ARE PAYING SERVICE TAX ON G.T.A.UNDER REVERSE CHARGE WE ALSO EARNINGS
COMMISSION FROM THE SUPPLIERS FOR WE ALSO PAID THE SERVICE TAX PLEASE CLARIFY
WE CAN AVAILED THE CENVAT CREDIT OF OUR INPUTS SERVICE TELEPHONE,COURIER,IMPORT SERVICE LIKE CLEARING FORWARDING CONTAINER AND G.T.A. INWARD FRIGHT CREDIT FOR THE PAYMENT OF SERVICE TAX AGAINST COMMISSIONS
WE CAN AVAILED FULL CREDIT OR PARTIALLY PLEASE ADVICE .
R.V.RAO
(Expert) 25 April 2014
wef 01/4/08,GTA(goods transport agency)service provider is not eligible to claim cenvat credit on such services provided by him.
source:
http://arxadvisors.com/userfiles/Chapter207
(1).pdf
R.V.RAO
(Expert) 25 April 2014
in continuation of of my above reply , i wish to state that the govt. of india amended cenvat credit rules on GTA vide notification number 26/2012 dt. 20/6/12, whereby GTA is allowed a service tax abatement(reduction) of 75% which means GTA to pay only 25% of applicable serv.tax, provided , CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
in other words,if GTA avails, serv.tax abatement facility, he cannot avail cenvat.
source:
http://www.caclubindia.com/forum/cenvat-credit-on-gta-services-223739.asp
Govindbhai
(Querist) 26 April 2014
SIR,
GTA AVAILS ABATEMENT FACILITY THEN CAN NOT AVAIL CENVAT, BUT ALSO PROVIDE BUSSINESS AUXILARY SERVICE THEN WE CAN AVAIL THE CENVAT CREDIT FOR PRIVDING OUTPUT SERVICE
Govindbhai
(Querist) 26 April 2014
SIR,
WE ARE THE SERVICE RECIPIENT IN GTA AND NEXT WE ARE PAYING SERVICE TAX ON COMMISSION AS SERVICE PROVIDER THEN WHAT IS THE RATION OF CENVAT FOR PROVIDING SERVICE.
OUR MAIN BUSINESS TRADING ITS EXEMPTED FORM
SERVICE TAX THEN WHICH SERVICE AVAILABLE AS A
CENVAT CREDIT.
R.V.RAO
(Expert) 27 April 2014
Cenvat Credit cannot be utilised for payment of service tax in respect of services where the person liable to pay tax is the service recipient [Explanation to rule 3(4) of Cenvat Credit Rules, inserted w.e.f. 1-7-2012]. [even earlier, it was not allowable]
Thus, the service tax is payable by cash only.
source:http://www.dateyvs.com/faqs-on-service-tax
so as long as you are not service receiver,you can use cenvat credit.
But usage of cenvat credit is restricted for GTA, because under notif.no 26/2012, GTA to pay only 25% of serv.tax , provided,he does not take cenvat credit.
as far as trading is concerned it is in negative list and exempt from serv.tax
"if any output service is exempt from payment of service tax, the assessee is not eligible for availment of Cenvat Credit on any input service"
source:indiankanoon.org
