service tax on goods transport agency

Ram Kishan (Querist) 28 December 2008 This query is : Resolved
As per service tax act service tax to be deducted on 25% value of Goods Transport Agency bill and can take credit after deposit the service tax amount if make transfer sale. My question is can we utilised cenvat credit to pay service tax amount on Goods Transport Agency?

thanks
ramkishan

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Rajesh Kumar (Expert) 28 December 2008
No. Cenvat credit should not be utilised for payment of service tax on GTA service, as it is not an output service os the service receiver.