Service Tax on GTA outward

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Can we take service tax on outward GTA? All sales done on FOR basis (Freight & insurance including in basic Price).

AI Summary

Can Service Tax on Outward GTA Services Be Claimed as Cenvat Credit? Ownership and Delivery Terms Key. A discussion on a forum addressed whether service tax on outward Goods Transport Agency (GTA) services can be claimed as cenvat credit. The key point is determining the ownership of goods during transport. If ownership remains with the seller until delivery to the buyer's premises, the seller may claim cenvat credit on outward transport. The discussion also touched on the implications of FOR (Free on Road) terms and the necessity of aligning revenue recognition with delivery terms. Participants debated the conditions under which the place of removal affects eligibility for service tax credits.