service tax on freight

[Gopal B]

Dear Sir,

We have a Mfg.company. My Transport contractor collecting service tax  on freight from us. Shall we can take the credit  of S.tax or nor? pls reply 

[Brijesh Verma]

Cenvat can surely be availed.

Please check reverse charge applicability also !!!

AI Summary

Manufacturing Company Seeks Clarity on Cenvat Credit Eligibility for Service Tax on Freight Charges, Considers Reverse Charge Mechanism A manufacturing company inquired about the eligibility to claim credit for service tax paid on freight charges collected by their transport contractor. A respondent advised that Cenvat credit can be availed for the service tax paid. However, they also suggested checking the applicability of the reverse charge mechanism in this context.