input service tax on GTA Agency creditable or not?

[Asked by Guest]

dear experts,

we are manufacturing of pump and motor and we require RM. for making a finished goods .

we are paying freight TO GTA . on my RM. received from vendor against my question is that

1) Can GTA (Transporter ) charge service tax in his L.R. according service tax law ?

2) if yes , then we are eligible to take credit of input service tax?

3) if GTA (Transporter) charged service tax in his L.R. still we are liable to pay service tax according to service tax law?

pls. reply so we can go in proper way..

regards,

Manan Pandya

AI Summary

Reverse charge on goods transport agency services: recipient liable for service tax; input credit available on inward supplies.
Service tax for Transport of Goods by Road via a GTA is payable by the person who pays freight under the reverse charge mechanism; a GTA charging service tax on its bill does not discharge the recipient's liability and the recipient should not pass that charged tax to the GTA. Input service tax (CENVAT) on inward materials transported by GTA is eligible for credit, and similar credit treatment can apply for jobwork-related inbound and outbound movements, subject to applicable CENVAT rules.