Input credit on Import Freight by Vessel

[Sujeet Jha]

Example: A is owner of vessel. B is freight forwarder and C is Importer.

'A' bill raised to B with Service Tax @ 4.50% and B bill raised to C with Service Tax @ 4.50%.

So B are utilized Service Tax Credit or not???

[Ganeshan Kalyani]

Sir, yes B would be utilising the credit. Thanks.

AI Summary

Freight Forwarder Can Utilize Service Tax Credit When Billed by Vessel Owner and Billing Importer at Same Rate A discussion on a forum addressed whether a freight forwarder, referred to as B, can utilize service tax credit when a vessel owner, A, bills B with a service tax of 4.50%, and B subsequently bills the importer, C, with the same service tax rate. The response confirmed that B is indeed able to utilize the service tax credit.