Dear Sir,
We are having 100 percent EOU unit and we are paying service tax on inward transportation 12.36 percent on 25 percent of transportation charges in connection with imported & indigenous goods with availing abatement (75 percent ) . We are paying through Bank challan and taking credit in subsequent months. whether we can avail or not please clarify the same. Range superintendent is issuing a letter to reverse the same with interest. (We have not utilized the availed credit)
Pl clarify the same
Debate on EOU's Eligibility for Input Tax Credit on Service Tax for Inward Transport Under Reverse Charge Mechanism A discussion on a forum addresses whether a 100% Export Oriented Unit (EOU) can claim Input Tax Credit (ITC) on service tax paid for inward transportation under the Reverse Charge Mechanism. A user queries about reversing claimed credits after receiving a letter from a range superintendent. One response agrees with the superintendent, stating that Cenvat Credit is not available under Reverse Charge. Another user disagrees, citing the Cenvat Credit Rules, suggesting that input services are eligible for credit, and advises responding formally to the superintendent's letter, emphasizing adherence to the law. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
