Service tax credit after availing abatement

[Guest]

We are paying service tax ON GTA services after availment of 75 % abatement. My question is whether we can avail exemption service tax on above upto 20 % from taking Credit Service tax on telephone, Advt. or other items. ? Manoj

AI Summary

No Cenvat credit on telephone or advertising services if service tax exemption is availed under notification 1/2006 ST. A query was raised about the possibility of availing a service tax exemption of up to 20% on services like telephone and advertising after taking a 75% abatement on Goods Transport Agency (GTA) services. The response clarified that Cenvat credit cannot be claimed when service tax is paid after availing partial exemption under notification no. 1/2006 ST dated 1-3-2006. Therefore, the benefit of Cenvat credit on telephone, advertising, or other items is not permissible in this scenario.