GOODS TRANSPORT SERVICE

[SNEHAL SHAH]

Sir,

We are the manufacturing of various HDPE & PVC products & we pay Service tax on GTA every month INWARD AND OUTWARD .

We pay servcie tax on ( Rs.100 -- Freight amount --- 75% amendment i.e. we pay service tax on Rs.25/- 10.30 % i.e. Rs.2.58/- Service tax deposit in Bank ) .

Now my Question is that can i take Cenvat credit on Input Service tax payment on GTA after benifit awailed of AMENDMENT ?

Please guide for this point .

Thanks ,

SACHIN

 

AI Summary

Manufacturers Face Restrictions on Cenvat Credit for Outward Transport Post-Exemption; Check Circulars for Possible Exceptions A manufacturing company inquires about the eligibility to claim Cenvat credit on service tax paid for Goods Transport Agency (GTA) services after benefiting from a 75% service tax exemption. Responses clarify that, as of April 1, 2011, Cenvat credit cannot be claimed on outward transportation, though it is possible for inward transportation. One reply advises referring to a specific circular for conditions under which credit on outward transportation might be claimed. Another response warns about potential disputes if outward freight is not included in the assessable value, emphasizing the distinction between valuation and Cenvat credit eligibility.