Credit of Service Tax

[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

EOU Cannot Claim Service Tax Credit on GTA Services for Exempt Goods Sold in Domestic Market An entity operating as a 100% Export Oriented Unit (EOU) inquired about the eligibility to claim credit for service tax against the reversal of excise duty for goods sold in the Domestic Tariff Area (DTA). The final product is exempt from excise duty, and the entity is reversing excise duty on DTA sales. They are also paying service tax on input services under Goods Transport Agency (GTA). The response indicated that while the entity can avail credit for service tax on services, it cannot do so for service tax paid on GTA services.