GTA - Amendment for availing cenvat credit

[Asked by Guest]

My openion on this notification No.1/2006-07 , we cannot take cenvat credit , if he avails the partial abatement like GTA , we will pay service tax 12.24% on 25 % of Gross amount. My query is that there is any new amended on this notification , if yes than please give the No. & date for the same. It is correct or not.

[Surender Gupta]

If you are the service receipient, you can avail the credit of service tax paid on Transport of Goods services irrespective of the fact that the service tax has been paid by the GTA or by youself. However, the GTA can not avail any credit to pay service tax on GTA if he his availing the exemption of 75%.

AI Summary

Cenvat credit entitlement: service recipients may claim credit for transport services even when provider avails partial abatement.
The service recipient may claim cenvat credit for transport of goods services irrespective of whether service tax was paid by the GTA or the recipient; a GTA that avails the partial abatement and pays tax on the reduced value is not entitled to claim cenvat credit for that abated service.