Service tax under gta

This query is : Resolved

Vaibhav (Querist)
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04 February 2016 Dear Experts,

We have amend the registration for GTA service in Dec-15.
Can we pay off the service tax under GTA and claim the Cenvat for the period of Apr-Dec' 2015

Thanks in Advance.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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04 February 2016 Service Tax Paid on GTA services is not Input Service as per Rule 2(l) of CENVAT Credit Rules 2004. This tax is further paid under the Reverse Charge Mechanism on abated value. Therefore the tax paid is not available as input credit.

Harshal Fifadra

Harshal Fifadra (Expert)
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05 February 2016 Hi vaibhav,

If service tax liability for GTA is paid then cenvat credit of the same can be availed by the assessee. This is in accordance with Provision 1 to sub rule 7 of Rule 4 of Cenvat credit rules, 2004

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