TaxTMI 
TaxTMI 
Can we (Manufacturing Unit) avail Cenvat Credit of Service Tax against out ward freight, the payment of Service Tax (3.09%) is made by us. Please confirm me at earliest.
With thanks and regards
Samik.
Cenvat credit of Service Tax against outward freight
15 Nov 2014 
3 Replies 
4712 Views Asked by
Cenvat credit on outward freight allowed up to the place of removal; not available if removal occurs at factory premises.
Cenvat credit for Service Tax on outward freight under GTA is allowable up to the place of removal; if the place of removal is the factory premises, such credit is not available. The Board has explained place of removal with reference to the Sale of Goods Act as the point where property transfers, permitting credit on freight to the buyer's location. Freight for exports and for removal to a depot or consignment agent is admissible where the place of removal lies beyond the factory. (AI Summary)
Cenvat credit for Service Tax on outward freight under GTA is allowable up to the place of removal; if the place of removal is the factory premises, such credit is not available. The Board has explained place of removal with reference to the Sale of Goods Act as the point where property transfers, permitting credit on freight to the buyer's location. Freight for exports and for removal to a depot or consignment agent is admissible where the place of removal lies beyond the factory. (AI Summary)