Dear All,
Greetings of the day.
Kindly give the clarifications for below points.
One of the Trader have S.Tax reg.No and doing commission business. He collects S.Tax on commission and paid taxes. Can he avail cenvat input on freight (GTA) payments?
Newly S.Tax registered transport agency (Partnership firm) can collect S.Tax on LR’s? Can transport agency avail input services amounts?
Regards
M.RamKumar
Traders in commission business can't claim CENVAT credit on freight payments without consignment notes from Goods Transport Agency. A trader registered for Service Tax, engaged in commission business, cannot avail CENVAT credit on freight payments (GTA) as trading is considered an exempt service. For a Goods Transport Agency (GTA) to collect Service Tax, it must issue consignment notes; without them, it's not considered a GTA and is not liable for Service Tax. Although services related to Business Auxiliary Services (BAS) are eligible for CENVAT credit, trading services involving GTA are not. If a consignment note is not issued despite providing GTA services, the service is taxable, and penalties may apply for non-compliance with Service Tax laws. (AI Summary)
TaxTMI 
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TaxTMI 
