GOODS TRANSPORT AGENCY

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BISHNU DEO SHARMA (Querist)

12 June 2009 DEAR ALL EXPERT,

Pls. guide me about Service tax liability towards Goods transport services.

My question is: can i pay my service tax liability of GTA from credit balance of service tax credit.

Is it mandatory for service tax payment of GTA should be made through CASH only.

Pls. help me.

Regards
Bishnu Deo Sharma
email: bishnu_jsr@rediffmail.com

Shyam Lal Naik

Shyam Lal Naik (Expert)

12 June 2009 It is mandatory to pay ST payment for GTA through cash only w.e.f. 01-03-2008.

The GTA service has been excluded from the definition of Output Service. Cenvat Credit can be utilised towards payment of tax on output service only. Consequently, you can not the tax on GTA from Credit Balance of Service Tax Credit(Commonly known as Cenvat Credit).

BISHNU DEO SHARMA

BISHNU DEO SHARMA (Querist)

12 June 2009 DEAR SIR (MR. SHYAM LAL NAIK)

SIR CAN U PROVIDE ANY NOTIFATION NO. OR CIRCULAR ON ANY LINK FOR ABOVE WHICH U WRITE.

It means prior 01.03.2008 GTA Liability adjusted through credit of service tax is possible?

SIR MY MAIL ID IS : bishnu_jsr@rediffmail.com

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

14 June 2009 Yes input services credit cannot be used to pay the ST on input services.
Only input services can be used for output services.
About 2 years back the payments to GTA under reverse charge were deemed to be an output service in which period the same was eligible. Now this deifntion has undergone amendment.

Shyam Lal Naik

Shyam Lal Naik (Expert)

22 July 2009 Dear Mr. Sharma,

Please refer to the definition of "Output Service" in rule 2 (p) of Cenvat Credit Rules, 2004

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