Can Service Tax on GTA be paid from your excise cenvat credit?
Yesterday, DDT asked this question. In DDT 342 - 17 04 2006,the issue was explained in detail. We had also carried an article Output service - does deletion of explanation in Rule 2(p) changes the intention of the Rule?
We had opined that it is permissible. Now the CESTAT has confirmed this view. So you can pay this tax from your credit account, which means, you need not pay any tax at all. In effect, a manufacturer paying excise duty and taking cenvat credit will not be paying any tax on GTA.
See Breaking News for more details.