Service Tax on GTA can be paid from cenvat credit account

By Vijay Kumar

The Service Tax on GTA has invited the largest amount of litigation. One of the agitating questions was whether the Service Tax liability of a manufacturer availing GTA services can be discharged by debiting in the Cenvat account. The Department had been insisting that GTA Service Tax has to be paid in cash only as the manufacturer paying the Service Tax as a recipient was not really a service provider.

Now the CESTAT has ruled in favour of the assessee.

Please see our Breaking News for more details of the case