pay service tax on GTA Services

[VINOD JINDAL]

We are liable to pay service tax on GTA Services
whether we can utilized cenvat credit on liability of GTA Services or only paid in cash?
Please give relevant case law if any

[Rajesh Nathoo]

Dear Mr. Vind ,

U will have to pay  only  in cash. However u  can take credit  of this paid  amount if eligible as per  Cenvat Credit  Rules , 2004.

AI Summary

Cenvat credit on GTA service tax may be claimed if eligible, though the service tax must be paid in cash. Liability to discharge service tax on Goods Transport Agency (GTA) services must be paid in cash; however, the amount so paid can be taken as Cenvat credit if the taxpayer meets the eligibility criteria and conditions prescribed under the Cenvat Credit Rules, 2004.