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

[Asked by 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.

[Surender Gupta]

A manufacturer can be registered as ISD. In case of GTA service tax paid by the manufacturer, can be claimed as CENVAT credit on the basis of TR-6 challan. However, in other cases, if service tax is not shown on the invoice or bill, no cenvat credit is available on assumption basis.

AI Summary

Cenvat credit entitlement: ISD-registered manufacturers may claim GTA service tax credit via TR-6, but not on assumed taxes.
A manufacturer registered as an Input Service Distributor may claim and distribute CENVAT credit of service tax paid on GTA services on the basis of the TR-6 challan. If a service provider fails to show service tax separately on the invoice, the recipient cannot assume tax was paid and cannot claim CENVAT credit on that assumed basis.