availment of service tax credit for GTA out ward services

[ramswaroop vyas]

Dear Experts,

My queries relates to take credit of the service tax paid on out ward freight. below is brief of my sales patterns

1. We are a manufacturing unit,

2. We pay the freight on outward transportation ( dispatches made) and our delivery terms are door delivery therefore place of removal is customer gate.

3. We are showing Freight separately in invoices ...invoice pattern is as below.

Sale value for say 100 Rs.

inovices

Assessable value Rs. 98

Excise 12.5% : 12.25

Total : 110.25

Freight : 2

Cst : 2.5

Grand total _- : 114.5

We are paying service tax on ₹ 2 @14.5 % after availing of abetment of 70% in GTA.

Now my query is are we eligiable to take credit of service tax paid by company.

Regards

ram

AI Summary

Place of removal determines service tax credit eligibility on outward freight; FOR destination sales may permit credit up to delivery.
Eligibility to claim Cenvat credit of service tax on outward freight depends on the factual legal determination of the place of removal. Credit is admissible only up to that place; if contract terms, risk allocation, and documentary evidence establish sale and transfer of property at buyer's premises (FOR/destination), credit may be claimed up to destination. Recent judicial pronouncements and amended rule definitions emphasise factory-gate removal in many cases, limiting credit where removal is held to occur at the factory. Freight and service tax treatment also affects excise valuation and revenue recognition.