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Taken Cenvat credit of Service Tax on GTA service on the basis of Input Invoices(Excise) .

Service Tax - Started By: - nirmal dutta - Dated:- 27-7-2016 Last Replied Date:- 9-8-2016 - Respected Sirs,Taking credit on the basis of Input Invoices(Excise) when service tax paid by the manufacturer-supplier on GTA service of inward transportation of goods upto factory.The freight for transportation was paid to the transporter by the manufacturer-supplier of the goods and hence they paid service tax, too, on reverse charge mechanism. It was the outward transportation for them and thus the no .....

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Kalyani - The Reply = Sir, what is proof that your supplier has not availed the Cenvat credit of the service tax paid by them on outward GTA under reverse charge. The department will analyse the case in this way. So you need to check the terms and conditions of the delivery of the goods as to whether the delvery is ex-factory or FOR basis. Both cannot avail the same credit. It will lead to litigation to either of the party into the transaction. Thanks. - Reply By MUKUND THAKKAR - The Reply = Si .....

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lier, the service is availed by manufacturer supplier, you cannot avail credit even on the invoice raised by the Manufacturer-supplier. The basic question is who has availed the service from the transporter. In this case the service has been availed by Manufacturer-supplier only and not you. The manufacturer-supplier can be said to have received the services of transporter as he arranges the transport for delivery of his goods to his purchaser. - Reply By MUKUND THAKKAR - The Reply = Thank you s .....

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erse charge mechanism and Service tax on outward freight is paid through challans. - Reply By JSW CEMENT LIMITED - The Reply = Sir,Whatever declaration the manufacturer-suppliers gives, the basic issue would revolve around the point as to who is the service receiver. When the delivery term is FOR, it means that arrangement of transport, payment of freight every thing is in the scope of Manufacturer-supplier. Thus the service of GTA has been received by the manufacturer-supplier only and service .....

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ial Basic value + Excise duty + CST + Freight + Service Tax + Insurance = Total payable. - Reply By Rajagopalan Ranganathan - The Reply = Sir, With due respect to views of experts, my view is as under:- Rule 2 (d) (B) of Service Tax Rules, 1994 stipulates that any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage. In your case your consignor can be treated as your agent since you are reimbursing the fr .....

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nvoice is a output service tax liability which he had collected from the buyer and paid to the Govt. Hence he cannot taken credit as the same is his output service and not input. On the other hand the recipient has paid the service tax of the amount charged on the invoice to the manufacturer-supplier which tends to be his input service and therefore eligible for credit in the hands of the buyer.If the manufacturer-supplier is selling the goods on FOR basis then the liability of the freight cost .....

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ould like to differ from your view. In service tax rules, other than ISD, there is no provision to pass on the service tax on rule 11 invoice. Further treating a service tax paid under section 68(2) of the Finance Act and passing on to the buyer as output service also does not seems to be correct. Here in the instant case, the buyer is reimbursing the service tax to the seller and in my view credit cannot be availed by the buyer as the seller is not providing any service to the buyer. The delive .....

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his liability in total). The point when he is charging in the invoice the service tax that he has paid doesn't it mean that he has passed the liability to the buyer. This is my thought.However as I said in my previous reply that either of the party has to avail the credit. It should not happen that both the supplier and the buyer has availed the credit. Thus the agreement need to be checked thoroughly befor a call is taken. Thanks. - Reply By JSW CEMENT LIMITED - The Reply = Ganesh sir, it .....

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se of reverse charge it has to be challanding evidencing payment of stax from the regd. No. which is not the case here. This is my opinion.RegardsV Venkat Raman - Reply By KASTURI SETHI - The Reply = Sh.Nirmal Dutta Ji, I intend to intervene. Suppose GTA is A. A transported the goods for delivery to B (Manufacturer-supplier) who paid the freight to GTA and paid ST. B supplied the goods to C. My question is 'Who has allowed manufacturer-supplier to act as GTA for passing Cenvat Credit to C by .....

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