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GTA - Service tax

This query is : Resolved 

29 July 2009 Goods where despatched from factory to customer directly. The transporter has charged the service tax on the invoice.
Can we shall pay the service tax amount or we shall deduct the same and deposit to Gov. revenue? can we get service tax credit?


29 July 2009 You, being a manufacture, are liable to pay tax on GTA.

You need to deduct the same and deposit it into Government Account.

The activity, being in relation to business, is an inpur service, as held by various tribunal, cenvat credit available.

Since GTA is a ever changing and prone to litigation, please seek more opinion.

30 July 2009 Deduct from transporters bill if charged. pay him only freight.
Pay the ST on 25% of the freight paid in cash.
Avail credit on the same in subsequent month.


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