TaxTMI 
TaxTMI 
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
service tax on freight
25 Nov 2013 
1 Reply 
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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. (AI Summary)
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. (AI Summary)