Service tax Charged correct or not

[Guest]

Dear Sir,

We are a mfg co, one of vendor has charged service tax on Transport and Octroi charges under Business Auxiliary Service Category whether it is correct. If yes please mention us any reference regarding such query and can we avail service tax credit of the same as a input service.Thanks and regards.

[Brijesh Verma]

As far as category is concerned, the same appears to be in correct. However, you can very well take Cenvat of the same since the same is in relation to inward transportation.

[Guest]

Dear Sir,

Thanks for the reply but please explain us whether he can charged service tax on Octroi charges.Pls explain, thanks and regards.

AI Summary

Service tax on transportation: classification may be incorrect but Cenvat credit allowed for inward transport; octroi charge questioned. Vendor charged service tax on transportation and octroi under Business Auxiliary Service. The advisor indicates the classification for transportation appears incorrect but confirms the manufacturer can take Cenvat credit as the charge relates to inward transportation. The question whether service tax can validly be charged on octroi remains outstanding.