raw material as such cleared

[brij rathi]

sir

we cleared rm as such to another our sister concern . we reverse duty as it is. pl clear about impect of service tax on gta.

bk rathi

[MUKUND THAKKAR]

if you have taken GTA credit when such material you have procure from your vendor as Inward GTA. than you have to pay out ward GTA from the same material.

[brij rathi]

sir,

its ok . we pay s.tx on gta for outward. but we taken taken cenvat credit as we pay by pla on gta for inward for same material.

[RAMNIRANJAN KANDOI]

As per Rule 3(5) of CCR,2004, one has to debit equal credit but there is no need to reverse Input Service credit on GTA.

AI Summary

Clarification on service tax for Goods Transport Agency: Rule 3(5) of CCR, 2004 eliminates need to reverse Input Service credit. A discussion on a forum addresses the issue of clearing raw materials to a sister concern and the implications of service tax on Goods Transport Agency (GTA). The initial query involves reversing duty and the impact of service tax. One response clarifies that if GTA credit was taken for inward transportation, outward GTA must be paid. Another response confirms that service tax is paid on outward GTA while CENVAT credit is taken for inward GTA. A final response cites Rule 3(5) of CCR, 2004, stating there is no need to reverse Input Service credit on GTA.