GTA-Abatement -CenVAT Credit

[guna ch]

Dear Sir

We are manufacurer of valves and fittings

1. We are paying the service tax @12.36% (75% Abatement) on GTA under reerse charge mechanism.

is this service tax can we trated as CENVAT for our Excise Returns

2. we are paying  service tax to our srvice providers  on jobwork and testing charges . is this service tax can claim as CENVAT for Excise

3. as same as we are paying st on telephone charges

Kindly suggest me is this can we cliam as CENVAT for Excise

 

 

[YAGAY andSUN]

First of all you would have to take an undertaking from the transporter that he is not availing the CENVAT credit on Inputs, Input services and on capital goods since your are availing the abatement @ 75% on the value of the bill.

Now replies to your queries:-

1. Up to the place of removal you may avail the CENVAT credit.  If the terms are FOR even then you may avali the CENVAT credit.
2. If the jobwork and testing charges are included in the assessable value of the finished, then, you may avail the CENVAT credit otherwise not.
3. On Telephone charges, (on landlines and on Mobile phones), you may avail the CENVAT credit.

 

[guna ch]

Thank You Sir

 Kindly send me the notification rearding the above if any

Can i refer CENVAT Rules 2004

 

 

[YAGAY andSUN]

Yes, you may refer the CENVAT credit Rules, 2004.

AI Summary

CENVAT credit entitlement: service tax on transportation, jobwork (if in assessable value) and telecom charges allowed with conditions. CENVAT credit on GTA service tax is admissible if the transporter gives an undertaking that it is not availing CENVAT on inputs, input services or capital goods; credit is available up to the place of removal and even where terms are FOR. Jobwork and testing charges are eligible only when included in the assessable value of the finished goods. Telephone (landline and mobile) service tax paid by the manufacturer is claimable. Reference: CENVAT Credit Rules, 2004.