TaxTMI 
TaxTMI 
Dear Expert
Can we take service tax on outward GTA? All sales done on FOR basis (Freight & insurance including in basic Price).
Service Tax on GTA outward
08 Sep 2015 
6 Replies 
1559 Views Asked by
Guest 
Service tax on outward transport: cenvat credit hinges on place of removal and retention of ownership until delivery.
Eligibility for cenvat credit on service tax for outward transportation depends on whether the seller retains ownership or the right to dispose until delivery and thus whether the place of removal is the buyer's premises; where FOR destination terms apply and ownership is retained until delivery, service tax on outward freight is creditable, whereas if disposal passes at the seller's premises the place of removal is the seller's premises and transport tax beyond that point is not creditable. (AI Summary)
Eligibility for cenvat credit on service tax for outward transportation depends on whether the seller retains ownership or the right to dispose until delivery and thus whether the place of removal is the buyer's premises; where FOR destination terms apply and ownership is retained until delivery, service tax on outward freight is creditable, whereas if disposal passes at the seller's premises the place of removal is the seller's premises and transport tax beyond that point is not creditable. (AI Summary)