GTA SERVICE TAX CREDIT ADMISSIBILITY ON OUTWARD FREIGHT

[Asked by 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

AI Summary

Place of removal principle: outward freight credit allowed only up to the contractually established place of removal.
Service tax credit on outward freight is admissible only up to the place of removal; post sale transport beyond that point is not an input. The place of removal is defined by statute and the sale contract: if ownership, risk and price allocation show transfer at destination, transport to that destination may be creditable. A depot is a place of removal whether or not registered under excise.