Input credit of service tax paid on freight

[Guest]

Dear sir, Can we claim the benefit as Service Tax Input of freight service tax paid (even when abetment of 75% is claimed by the consignee)

AI Summary

Can input credit for service tax on freight be claimed with 75% abatement? Yes, if GTA hasn't used Cenvat credit. A query was raised about claiming input credit for service tax paid on freight, even when a 75% abatement is claimed by the consignee. Two responses were provided. The first response confirmed that the benefit of abatement can be claimed if the consignee pays the service tax, provided the challan is endorsed and the Goods Transport Agency (GTA) has not availed any Cenvat credit. The second response affirmed that credit has been available since January 1, 2005, with no restrictions in the rules.