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

Cenvat credit on freight service tax may be availed by recipient, subject to reverse charge applicability. Cenvat credit can be availed for service tax charged on freight by a transport contractor where the freight service qualifies as an input service for the manufacturer; however, the recipient must verify whether the reverse charge mechanism applies, as reverse charge treatment affects eligibility and timing of the credit.