GTA cenvat credit

[venkat eswaran]

Dear all

WE are mfg unit, for freight outwards & inwards we hired / contract with various transporters. Some transporters chrgd ser tax in their invoice and some transporters giving bills without ser tax. We are paying ser tax[GTA} those who not chrgd in the bill and taking cenvat credit.

Some Excise authorities saying we have to pay all ser tax on behalf of transporters. Transporters no need to pay. Is it ok? Ser tax part on service receiver is optional or compulsory?

Pl share ur views

Thanks in advance

Venkat

AI Summary

Reverse charge on GTA services: freight payer must discharge service tax unless transporter is separately liable.
Service tax on Goods Transport Agency services is generally payable by the service receiver under the reverse charge mechanism on an abated taxable value of freight (described variously as 25% or 30% of freight reflecting different abatements). Transporters providing door to door cargo handling may instead be liable and charge tax under their registration. Liability follows the party that pays freight-consignor or consignee-or, where neither is liable, the transporter. Payment by the receiver with cenvat credit is described as a permissible compliance route.