Credit of Service Tax

[Asked by Guest]

Dear Sir ,

 

We are 100% EOU and selling some goods in DTA . Our final product is exempted from excise duty. We are reversing the excise duty on DTA Sale (raw material used duty free purchased aganist form CT-3/ Procurement certificate)

We are depositing service tax on inputs services under GTA .

Kindly advice can we take credit of service tax aganist reversal of excise duty .

Regards ,

Ravindra Kumar

 

[Sandeep Chaudhari]

Dear Mr.Ravindra,

As per u r query, you are EOU and you are selling your goods in DTA on payment of Excise duty/reversal of duty. In this case you are eligible for availing the Credit of payment of ST on services other then payment of ST on GTA service.

 

 

AI Summary

Service tax credit for EOUs selling in domestic market permitted on input services, excluding GTA service.
Eligibility of credit of service tax arises where a 100% Export Oriented Unit sells goods in the domestic market and effects payment or reversal of excise duty on such DTA sales; service tax paid on input services may be set off as service tax credit against that excise-related liability, but payment of service tax on Goods Transport Agency services is excluded from such credit.