Sir
One assesse avails the abatement of 70 percent and pays only service tax on 30 percent of the taxable value of input service. After payment of service tax on 30 percent , avails cenvat credit of that paid service tax amount. it as per rule ? can both abatement and cenvat taken in GTA, works contract, rent a cab ?
CENVAT Credit Not Allowed with 70% Abatement on GTA and Rent-a-Cab; Specific Conditions for Works Contracts An anonymous user inquired about the eligibility of availing CENVAT credit after taking a 70% abatement on service tax for services like GTA, works contracts, and rent-a-cab. Responses indicated that CENVAT credit cannot be claimed simultaneously with abatement for GTA and rent-a-cab. For works contracts, there are specific conditions. It was clarified that manufacturers paying freight for inward and outward goods can avail CENVAT credit on GTA services after abatement. A storage outlet, if providing storage and warehousing services, can also claim CENVAT credit on GTA services post-abatement, based on specific notifications. (AI Summary)
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