Service tax liability on transportation

Yes. You need to pay under reverse charge mechanism as per notification no.30/2012. However, you can also claim the CENVAT credit of the amount paid under RCM based on Challan.

Yes, you need to pay service tax under reverse charge on abated value i.e. 30%. Furthermore youcan take credit of amount paid on the date of payment and can adjus against your normal output liability.

Regards

Thanks for your reply, I have one more query on the above that we have to pay service tax on Rs.10 Lacs @ 4.5% that is Rs.45000/- and after payment we can adjust this against next months service tax on Invoice to the customer.  Suppose next month Invoice to the customer Rs 12 lacs+ Service tax Rs.54000/- so we have to pay after adjistment (Rs54000-Rs.45000) = Rs.9000/- to pay to the Govt. 

Please correct me if my understanding is incorrect. Would you please let me know is there any notification that we can adjust this GTA as CENVAT Credit.

No, Credit of SBC is not avaialble therefore the same need to pay in cash only. Further, as such there is no notification to say specific that credit can be taken . However, Notification no 30/2012 put condition on the service provider and not on the service recivier to not to avail credit. Therefore, credit can be taken provided other conditions are complied with.

Regards

Thanks for your prompt reply.