cenvat after taking abatement

[sarat sahoo]

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 ?

[KASTURI SETHI]

For GTA answer is NO for GTA and Rent-a- Cab. Regarding WCS there are restrictions/conditions. Go through Notification No. 24/12-ST.

[SHIVKUMAR SHARMA]

If The Assessee is Manugacturer & he Paid Freight for Inward Material & for outward goods up to the place of removal

he can avail the cenvat Credit in case of GTA service after abatement of 70%on taxable value on the basis of GAR 7 Challan.

[sarat sahoo]

Sir

Assesee is a storage outlet . After of availment of abatement by which notification he is elligible for cenvat credit

[KASTURI SETHI]

Sh.Sarat Sahoo Ji,

I agree with Sh.Shivkumar Sharma on this point.

[JSW CEMENTLIMITED]

If the Assessee is a storage outlet, he is not a manufacturer but if he is a service provider of storage and warehousing service and paying service tax on such service, he is eligible to avail cenvat credit on GTA after abatement of 70% based on the copy of echallan.

[Ganeshan Kalyani]

Sir, GTA is eligible for CENVAT. WCT is subject to conditions. Rent-a-car not allow as credit (only on appeal -allowed). Thanks.

[KASTURI SETHI]

I agree with all experts. They have expressed correctly. What I want to say GTA Service Provider i.e. Transporter cannot avail abatement and Cenvat Credit simultaneously in terms of Notification No.26/12-ST dated 20.6.12 (Serial No.7)

AI Summary

Cenvat credit after abatement: eligibility depends on service type, generally disallowed for GTA and rent a cab. Eligibility to claim both abatement and Cenvat credit depends on service type and notification conditions: GTA and Rent-a-Cab providers generally cannot claim abatement and Cenvat simultaneously; Works Contract services permit credit subject to restrictions in the notification framework; manufacturers or taxable storage-and-warehousing service providers who pay tax may avail Cenvat on the paid portion based on documentary evidence such as GAR-7 e-challan, provided notification conditions are satisfied.