Input credit on service Tax Liability

[gadamsetty praveena]

Sir,

I am running a logistis company and paying huge ocean freight expenses including service tax.

Can't i claim such service tax paid as input on ocean freight while payment of Service Tax Liability

Please Guide me in this regard

[PAWAN KUMAR]

Dear Sir,

As per my view, you may claim input and set-off this towards your service tax liability.

[Ganeshan Kalyani]

Sir, to be in breif in reply the nexus between input service and output service should be established to claim service tax credit. If there is nexus then the credit is eligible. Thanks.

AI Summary

Input service credit on ocean freight allowed where nexus to taxable output service exists and may be set off. A logistics provider may claim input credit for service tax paid on ocean freight only where a nexus between the input service and the taxable output service is established; if such nexus exists, the input credit is eligible and may be set off against the provider's service tax liability.