service tax on freight and cenvat credit thereon

[RAM SHARMA]

Dear Experts,

We are selling our goods through consignment agent and bear all the expenses like freight and commission. We are availing cenvat credit on freight and commission up to place of removal means up to consignment agent godown. By doing this, we are paying excise duty on such freight and commission because our price is inclusive of freight and commission. Now, we want freight should be bear by our consignment agent and take service tax credit theron. Further we want to given discount on invoice in place of commission. By doing this, we can save excise duty on such freight and commission. What will be the legal implication by implement this procedure. Please suggest.

Thanks & Regards

AI Summary

Business Seeks Advice on Service Tax, CENVAT Credit for Freight and Commissions; Considers GST Implications A business is seeking advice on service tax and CENVAT credit related to freight and commissions for goods sold through a consignment agent. They currently include freight and commission in their pricing, which affects excise duty. The business proposes shifting freight costs to the consignment agent and offering discounts instead of commissions to reduce excise duty. They inquire about converting the consignment agent into a dealer to enable service tax credit on freight. Responses highlight the importance of defining the place of removal and the implications of such changes, especially considering upcoming GST regulations.