Cenvat credit for GTA service Recent Notification - Professionals - GST - TIK Share
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Cenvat credit for GTA service Recent Notification


Mukesh Jain CA

2014-08-17

Cenvat Credit On Goods Transport Agency service (ie., Transportaion of goods by road transport)

Service tax is payable by service receiver (Instead of provider) on reverse charge basis. An abatement of 75% is available to the receiver & service tax is payable on 25% portion only by the receiver. Usually Cenvat credit will not be available to the service provider due to the abatement. However the service receiver can claim cenvat credit though he pays the service tax after the claim of abatement. This is as per recent notification no 08/2014.

Rahul Rai

2014-08-17

Can you please explain it with an example. Suppose i receive a frieght with Bill of rs. 100. How much service tax should i pay and how much credit i can take?

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