Dear Members,
I have a client who is registered under the service category of GTA service in the capacity of service recipient. Just wanted to clarify that he has no other output service.
I just wanted to know, whether he can get the credit of service tax paid on GTA service against the next months service tax liability.
Client Seeks Clarity on Input Credit for GTA Services; Notification 12/2008 Limits CENVAT Credit Use for Tax Payment A client registered under the Goods Transport Agency (GTA) service category, acting as a service recipient, seeks clarification on whether they can claim input credit on service tax paid for GTA services against future tax liabilities. One response highlights that, due to Notification 12/2008, CENVAT credit is withdrawn for GTA services, restricting tax payment to 25% of freight. Another response clarifies that while CENVAT credit is available, it cannot be used to pay GTA tax under the reverse charge mechanism, which requires cash payment. The final response concurs, noting that inbound freight credit is available, but outbound freight credit remains disputed. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
