Credit of Service Tax paid on Freight for Sale of Goods on FOR Basis

[Navneet Agarwal]

Sir,

I would like to know that whether credit of Service Tax paid on Freight charges for Sale of Goods made on FOR Basis. I understand that their is some change in definition of 'place of removal'.

[KASTURI SETHI]

Go through this circular.

‘Place of Removal’ under Section 4 of Central Excise Act, 1944, Cenvat Credit Rules, 2004 and Cenvat Credit Rules, 2017 - Clarification

Circular No. 1065/4/2018-CX., dated 8-6-2018

AI Summary

Credit of service tax on freight hinges on the legal concept of place of removal and credit eligibility. Whether input credit of service tax on freight for sales on a FOR basis is admissible depends on the meaning and effect of place of removal under Section 4 and the Cenvat Credit Rules; the cited circular interprets how removal location and the nature of the freight service determine Cenvat/service-tax credit eligibility.