Chargiability of service tax

[HITENDRA DAVE]

transporter charged service tax on his bilty that in position we paid the service tax amount to the transporter and thereafter we can availed cenvat credit m i right ,same times transporter charged S. T. and same times not charged bill is above 750 why?

[Surender Gupta]

as per notification no. 34/2004 - ST, GTA services are exempt form service tax where the freight charges are not exceeding Rs. 750/-. Further, you can avail the cenvat credit of service tax charged by the transporter if the same is qualifying the meaning of input service and outward freight is upto the place of removal.

AI Summary

GTA services exemption limits transporter service tax; cenvat credit allowed if service qualifies as input and freight reaches removal. GTA services are exempt from service tax where freight does not exceed the statutory threshold. If a transporter charges service tax and the recipient pays it, the recipient may claim cenvat credit provided the tax qualifies as an input service and the outward freight is to the place of removal; credit availability depends on lawful charging and compliance with cenvat eligibility conditions.