GTA SERVICE TAX CREDIT ADMISSIBILITY ON OUTWARD FREIGHT

[Guest]

Dear Sir,

Please explain regarding Service tax credit admissibility on outward freight under following circumstances 1) In the case of clearance of finished goods from the factory to the customers in such case whether we as a manufacturer has paid service tax under reverse charge can avail cenvat credit of such outward freight. 2) In the case of clearance of goods to depot which is not registered under excise whether we can avail such credit in such situation also, Please explain, Please give us any references regarding this.Thanks & regards.

[bhart b sharma]

plz go through following judgment :

Commissioner v. A.B.B. Ltd. = 2011 (3) TMI 248 - KARNATAKA HIGH COURT= 2011 (23) S.T.R. 97 (Kar.)

AI Summary

Cenvat credit on outward freight: admissibility under reverse-charge GTA tax questioned; precedent cited for guidance. Admissibility of Cenvat credit for service tax paid under the reverse charge mechanism on outward freight by a manufacturer-both on direct factory-to-customer clearance and on consignments to an unregistered depot-is queried. The reply points to Commissioner v. A.B.B. Ltd. as the reference authority to determine whether payment to a Goods Transport Agency (GTA) permits availing input credit for outward movement services.