Benefit of GTA - being a manufacturer

[Vijay Chitte]

A manufacturer does not providing any taxable services, but fall under GTA service and pay the tax on 25% on gross amount. Query 1: Manufacturer pay the service tax on GTA is also treated as a service provider? Query 2: whether the Manufacturer is also entitled to take all benefit [Cenvat Credit Rule, 2004,  Rule 6(3) and 6(5)]. which a service provider is entitled to?

AI Summary

Manufacturers Can Claim Cenvat Credit for Service Tax on GTA; Rule 6(3) and 6(5) Provisions Apply A manufacturer paying service tax on Goods Transport Agency (GTA) services is considered a service provider solely for the purpose of paying service tax. This manufacturer can claim the service tax paid on GTA as Cenvat Credit to offset against Excise Duty. However, the provisions of Cenvat Credit Rule 6(3) and 6(5) apply to the manufacturer.