TMI Blogcredit availmentX X X X Extracts X X X X X X X X Extracts X X X X ..... We produce nylon monofilament. Our product is fully exempted as per Notification 30/2004 . We are paying Service Tax for GTA and other services related to our production. Though the product is exempted from payment of excise duty shall we take credit for the amount paid as service tax and set off the service tax payment paid under GTA? Kindly advise. - Reply By Surender Gupta - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = No, the facility of Cenvat Credit is not available to pay service tax under reverse charge system - Reply By RAMESH ANANTHAKRISHNAN - The Reply = Thanks sir. No sir, My question is not to avail the CENVAT credit on input material. May be I have presented wrongly. My question is since we are paying service tax to C F and other services, shall we avail the credit of service tax paid and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t off the service tax to be paid for GTA. Regards A.RAMESH - Reply By Surender Gupta - The Reply = As I understand you are required to pay Service Tax on GTA services. Please clarify that are you a service provider or liable to pay under reverse charge. - Reply By RAMESH ANANTHAKRISHNAN - The Reply = No sir. We are not service provider. We are a manufacturer. Since the quantum of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax is big , if there is a provision to avail the credit (of service tax) it will be helpful to setoff the amount while we pay the service tax under GTA. - Reply By Surender Gupta - The Reply = You are not entitled to take any credit of inputs or input services since you are not manufacturing excisable goods or not providing any taxable services. However, in case you are in export of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods, than Cenvat Credit may be availed if otherwise eligible. - Reply By krishna murthy - The Reply = Mr. Ramesh Notification No. 30/2004 is a conditional notification and is applicable to you provided, you do not avail cenvat credit on inputs and input services. As per this notification, your clearance of finished product is exempt subject to you not availing the cenvat credit. Hence, you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot avail credit of services tax incurred on any input services. Regards - Reply By Pradeep Khatri - The Reply = CENVAT credti wouldn't be available to you since your final product is exemtped and It also can't be available for paying off the liability of output services i.e. GTA. - Reply By sv bhasker - The Reply = Sir, You can not utilise input service credit to set of payment of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax on GTA as the said service under Section 65(105)(zzp) is excluded from the definition of 'output service' defined under Rule 2(p) of Cenvat Credit Rule, 2004 uptill 30.6.2012. It appears that same is the position after the advent of negative list based services effective from 1.7.2012. - credit availment - Query Started By: - RAMESH ANANTHAKRISHNAN Dated:- 12-7-2012 Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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