TaxTMI 
TaxTMI 
Dear Sirs, My query is releating to availment of service tax credit on payment made by transporter. Please clarify whether we can avail cenvat credit of GTA paid by transporter.
CENVAT CREDIT ON GTA
04 Feb 2012 
7 Replies 
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Cenvat credit on GTA: receiver may claim input service credit when the service qualifies and reverse charge applies.
Cenvat credit on GTA service tax is available to a manufacturer or provider of taxable service when the GTA service qualifies as an input service and the recipient meets Rule 3 conditions; who actually paid the tax (GTA, consignor or consignee) does not prevent credit. If the recipient falls within categories subject to reverse charge, the recipient must pay service tax and may claim credit. Compliance risks include departmental challenge where the transporter was not liable and potential reversal obligations tied to notifications regarding payment timing. (AI Summary)
Cenvat credit on GTA service tax is available to a manufacturer or provider of taxable service when the GTA service qualifies as an input service and the recipient meets Rule 3 conditions; who actually paid the tax (GTA, consignor or consignee) does not prevent credit. If the recipient falls within categories subject to reverse charge, the recipient must pay service tax and may claim credit. Compliance risks include departmental challenge where the transporter was not liable and potential reversal obligations tied to notifications regarding payment timing. (AI Summary)