Availment of Service credit on Retention Charges

[SANDESH SHINDE]

Dear Sir,

Can we avail Service tax credit on retention charges charged by Custom House Agent , Goods Transport Agency service.Please explain,Please give us any reference regarding this,Thanks and regards.

AI Summary

Retention Charges Not Eligible for Service Tax Credit: Classified as Penalty, Not Service Under Tax Rules A user inquired about the possibility of availing service tax credit on retention charges imposed by a Custom House Agent or Goods Transport Agency. The response indicated that retention charges are not considered a service but rather a penalty or compensation for delays in availing services. Therefore, they do not qualify for service tax credit.