TaxTMI 
TaxTMI 
Dear all,
I make a provision for payment of Service Tax on payment to Goods Transport services. Can i adjust the service tax payable for Goods Transport service against my cenvat credit of Service Tax or I have to deposit the same.
Adjustment of Service Tax on Goods Transport Serives
09 Feb 2011 
2 Replies 
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Reverse charge on goods transport service requires monetary payment; cenvat credit largely disallowed, limited credit permitted for specific transport.
Liability to pay service tax on GTA services under reverse charge must be discharged by monetary deposit through GAR 7 challans, as GTA is not an output service and cenvat credit is generally not available. An abatement is available subject to procedures; limited cenvat credit may be taken for inward transportation and outward transportation up to the place of removal. Bills and LR copies should record that no cenvat credit is taken where applicable, and small freight exemptions may apply. (AI Summary)
Liability to pay service tax on GTA services under reverse charge must be discharged by monetary deposit through GAR 7 challans, as GTA is not an output service and cenvat credit is generally not available. An abatement is available subject to procedures; limited cenvat credit may be taken for inward transportation and outward transportation up to the place of removal. Bills and LR copies should record that no cenvat credit is taken where applicable, and small freight exemptions may apply. (AI Summary)