Service tax - gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2016 A Company is paying rent Rs.60 lakhs + service tax Rs.9 lakhs per month. Can this service tax paid be adjusted against service tax payable on GTA? Kindly clarify.

Expert : Anonymous

Expert : Anonymous (Expert)

14 December 2016 Cenvat Credit can not be utilised for payment of Service Tax on GTA. GTA service is excluded from definition of output services.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 December 2016 GTA service tax comes under reverse charge method, service tax under reverse charge need to be paid in cash only. cannot adjust with cenvat balance