GTA - credit of service tax - service tax amount included in gross amount

[Guest]

Now input credit is not available in case abatement is claimed. In case of GTA, the receiver of service being a company, is liable to pay service tax. It pays tax @25%. My question is whether a manufacturer, redg. as ISD under service tax, distribute credit of service tax paid as GTA. It may be noted that the said manufacturer does not provide any other service. Another related issue is if a regd. service provider does not charge service tax separately in his bill, can the receiver of service (a regd. assessee under service tax) assume that he has paid service tax and claim the amount of assumed tax as input credit.

AI Summary

Manufacturers as Input Service Distributors Can Claim CENVAT Credit for GTA Tax via TR-6 Challan, Not Without Invoice Tax Details. A discussion on a forum addresses the credit of service tax in the context of Goods Transport Agency (GTA) services. A user inquires about whether a manufacturer registered as an Input Service Distributor (ISD) can distribute credit of service tax paid on GTA services, noting the manufacturer does not provide other services. Additionally, the user questions if a registered service recipient can claim input credit if the service provider does not separately charge service tax. The response clarifies that CENVAT credit can be claimed for GTA service tax paid using a TR-6 challan, but not if the tax is not explicitly shown on the invoice.