Service Tax avail on manufacturer depot services

[Neeraj Sharma]

Dear Sir,

We have one manufacturing unit and due to shortage of space start a new manufacturer depot near by customer. our manufacturer depot register under central excise. We have transfer our FG after paying of duty under rule 7 from our factory to depot. In Manufacturer depot we have maintain RG23D register & duty pass on to customer on time of sale.

We have paid service tax on some services from our manufacturer depot like rent of depot, freight outward etc. Now my query is can we avail service tax in our manufacturing unit and adjusted with our duty? All invoices received on our manufacturing unit address.

AI Summary

Can a manufacturing unit claim service tax credit on depot services without centralized registration or Input Service Distributor? A manufacturing unit started a depot due to space constraints and registered it under central excise. They transfer finished goods from the factory to the depot, maintaining an RG23D register and passing duty to customers upon sale. The query is whether service tax paid on depot services like rent and freight can be availed at the manufacturing unit. Responses clarify that credit can be availed if there is no centralized registration or Input Service Distributor, provided the depot's activities do not involve trading, which is exempt from service tax. Additionally, stock transfers are discussed in the context of VAT and Form F requirements.