CENVAT CREDIT ON OUTGOING TRANSPORT SERVICE TAX PAID

[Jayesh Shah]

DEAR SIR,

PLS KINDLY GIVE SUPPORTING EVIDENCE FOR SERVICE TAX PAID ON OUTGOING FREIGHT CHARGES IS CREDITABLE OR NOT ??

ASHISH PARMAR

​9427666934

[YAGAY andSUN]

Dear Jayesh/Ashish,

You can avail CENVAT credit on outward freight under GTA Service up-to the place of removal.  For details please check the definition of Input Services under CENVAT credit Rules, 2004.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[harsh shah]

Sir, what is the palace of removal for service provider ??Whether service provider can claim CENVAT of service tax paid on outward transportation of goods!!

[YAGAY andSUN]

Dear Harsh,

Please of removal means:-

1. Factory Premises;
2. Depots;
3. Warehouses.

Regards

Team YAGAY & SUN

(Indirect Tax Consultants)

[Guest]

Dear Sir

Our manufacturing plant is at Rajasthan and one of our Branch/depot is at West Bengal. We are sending material to our branches and our are selling this material to different customer.

The Freight is paid by us for transportation from Rajasthan to West Bengal.

So are we eligible for the service tax credit on outward freight under GTA because the place of removal/ final billing is West Bengal.

[SHIVKUMAR SHARMA]

Mr.Barot

In your Case the place of removal is Depot at West Bengal & you can avail cenvat credit of Service tax paid on Freight  from your Rajasthan(Manufacturing Unit)to (Depot ) West Bengal.

Regards 

SHIVKUMAR SHARMA

[YAGAY andSUN]

Dear Sharad,

We understand that your Place of Removal is your warehouse/depot.  The freight you are paying should be included in the assessable value of the goods and duty must be paid on such amount. If the such amount is included in the Assessable value of the goods, then, you can avail the CENVAT credit on the service tax paid on GTA services.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Cenvat credit on outgoing freight: credit allowed where GTA transport is to the place of removal and freight is included in assessable value. Cenvat credit is available on service tax paid for outward transportation under GTA Services up to the place of removal (e.g., factory, depot, warehouse). The freight must be included in the assessable value of the goods and duty paid on that amount for Cenvat credit to be availed; inter-branch transfers to a depot treated as place of removal qualify if these conditions are satisfied.