cenvat on courier, transport charges

[sarat sahoo]

Sir

One commercial education institute availed cenvat credit on transportation, courier charges for taking study material for student. The cenvat credit taken as per rule or not by mentionig the tule / notification no.

[KASTURI SETHI]

Study material is not chargeable to Service Tax. It is exempted from ST, it being sale. (Notification No.12/2003-ST now rescinded) So no credit is admissible. Also see Para No.2.9 of Board Circular No.59/8/2003-ST dated 20.6.2003 (Still in force.)

[Ganeshan Kalyani]

Sir, whether service provided by educational institute is liable to pay service tax. Querist is requested to please reply. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

He is talking about commercial educational institute. Commercial institute is liable to ST.

[JSW CEMENTLIMITED]

Since the services availed by you institute are in relation to provision of service by your institution, as such cenvat credit is available.

[KASTURI SETHI]

Sh.Sarat Sahoo Ji,

I agree with JSW CEMENT LTD. but Rule 6(3) of Cenvat Credit Rules is attracted in this case.

AI Summary

Cenvat credit on transportation and courier charges depends on whether materials are sale or input services under Cenvat Credit Rules. Admissibility of cenvat credit on transportation and courier charges for study material depends on whether the material is a sale (exempt from service tax, disallowing credit) or whether the services are inputs in relation to a commercial educational institute's taxable service (permitting credit), subject to the applicability and restrictions of the Cenvat Credit Rules.