GTA and Service Tax

This query is : Resolved

Santosh (Querist)
Follow

02 July 2009 in case of reverse charge on GTA can manufacturing cencern adjust the service tax liability from a cenvat credit balance are it has to discharge the liabitily only by payment

Vanita Rathi

Vanita Rathi (Expert)
Follow

02 July 2009 No It is to be paid as it is not paid as input service.
The following link contains article explaining all the issues in this regard.

Thanks
Vanita
http://www.thehindubusinessline.com/mentor/2007/07/23/stories/2007072350421200.htm

Vijay Chitte

Vijay Chitte (Expert)
Follow

02 July 2009 Service tax on GTA will have to be paid by CASH only and not through Cenvat credit, at least w.e.f. 01-03-2008, For past period, there is a scope for argument.

Upgrade to CAclubindia Pro. Subscribe Now!