Taken Cenvat credit of Service Tax on GTA service on the basis of Input Invoices(Excise) .

[nirmal dutta]

Respected Sirs,

Taking credit on the basis of Input Invoices(Excise) when service tax paid by the manufacturer-supplier on GTA service of inward transportation of goods upto factory.

The freight for transportation was paid to the transporter by the manufacturer-supplier of the goods and hence they paid service tax, too, on reverse charge mechanism. It was the outward transportation for them and thus the no question of taking credit of service tax so paid by them. But for us it was inward transportation of inputs and we are always to take credit of service tax so paid on inward transportation of inputs even if the said service tax is paid by the manufacturer-supplier as a result of making payment of freight to the transporter.

Sirs, In the above case Cenvat credit taken is wrong or irregular under any rules, notifications, circulars & any case law.

Thanks & Regards

nirmal

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AI Summary

Can a Buyer Claim Cenvat Credit on Service Tax Paid by Supplier for Goods Transport Agency Services? A discussion in a forum revolves around the eligibility of taking Cenvat credit on service tax paid for Goods Transport Agency (GTA) services. The query is whether a buyer can claim Cenvat credit for service tax paid by the manufacturer-supplier under the reverse charge mechanism for inward transportation of goods. Various participants argue that the credit should only be available to the party that directly received the service and paid the service tax. It is highlighted that if the manufacturer-supplier has already claimed the credit, the buyer cannot claim it again. The discussion emphasizes checking contractual terms and ensuring no double credit is availed.