TaxTMI 
TaxTMI 
We paid Service tax on Freight Outward(RCM).Can we claim input credit of that Service Tax?Pls clarify with any Notfication/Circular.
SERVICE TAX PAID ON FREIGHT OUTWARD
14 Feb 2019 
5 Replies 
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Input credit on outward freight allowed when freight is seller borne and ownership remains with seller until delivery.
Service tax on outward freight qualifies as Cenvat/input credit up to the place of removal where the freight operates as an input service and three conditions are met: ownership of goods remains with the seller until delivery (FOR destination), transit insurance is borne by the seller, and freight charges form part of the value of the goods and are borne by the seller. (AI Summary)
Service tax on outward freight qualifies as Cenvat/input credit up to the place of removal where the freight operates as an input service and three conditions are met: ownership of goods remains with the seller until delivery (FOR destination), transit insurance is borne by the seller, and freight charges form part of the value of the goods and are borne by the seller. (AI Summary)