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

Cenvat credit on transport services: inward transport credit available, outward transport credit restricted after the amendment.
Manufacturers can claim Cenvat credit on service tax paid for inward GTA transportation when tax is paid separately. Credit for outward transportation is restricted after the abatement/amendment came into force, though pre-amendment credits may be arguable and certain administrative guidance allowed limited outward-credit under conditions. Care is required if outward freight is excluded from assessable value, since claiming Cenvat credit may provoke valuation disputes; assessable value and input-service credit must be treated as separate issues.