ST on GTA of exempted goods

This query is : Resolved

Ramkrishna (Querist)
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01 June 2011 if a co. engaged in mfr. of exempted goods. Then whether it has to pay Service tax on GTA? and if has to pay the ST will be a cost enhancement in its cost becuase it is not eligible for credit.Please specify.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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03 June 2011 The status of the service reciver whether eligible to claim credit or not does not alter the liability to pay the service tax.

The only aspect which can be confirmed is whether the services are recived from a goods transport agent or operator.