CENVAT credit of service tax paid under abatement scheme

[PUNIT VARSHNEY]

dear friends and my seniors professionals,

whether the service tax paid on GTA service under reverse charge after claiming abetement is eligible for CENVAT credit as service tax paid on input service.

kindly suggest with ur views and if any with notifications as well

 

[Vijay Chitte]

you can avail the Cenvat Credit of Service Tax Paid on Inward / Outward transportation up to the place of removal. It is a part of defination of input service. As far as outward transporation concern, If outward freight is not included in assessable value, you should be very careful while taking Cenvat credit since dispute regarding assessable value may arise. Outward freight is eligible as input service even if its value is not included as valuation and cenvat credit are two different issues. Moreover, abatment is removed by notificaiton 12/2008-st and exampition are available as per Nofn.13/2008-ST without any condition.

AI Summary

CENVAT credit eligibility for input services: service tax on transportation under reverse charge remains claimable despite abatement issues.
Service tax paid on inward and outward transportation up to the place of removal is part of the definition of input service and may be availed as CENVAT credit; outward freight requires caution when not included in assessable value because valuation disputes can arise, but valuation and credit entitlement are distinct; abatement removal and separate exemption notifications affect relief availability.