Cenvat credit of the service tax on the freight paid

[Asked by Guest]

when we send goods to our customers the freight is paid by us . Are we eligible to take CENVAT credit of the service tax paid on the freight paid by us on sending the goods to our customer.

[Surender Gupta]

Yes, you are eligible to take CENVAT credit of the service tax paid on freight paid on sending the goods to your customer.

[Madhukar N Hiregange]

The credit is available as per me as the input credits defintion is wide. The servcies in relation to business would include outward freigth in my opinion. It maybe better to avail the credit rather than avoid the same.

AI Summary

Cenvat credit for service tax on outward freight available since freight qualifies as an input service for business.
Freight for outward transportation, carrying service tax when goods are sent to customers, is treated as an input service connected with the business and therefore eligible for Cenvat credit; forum advice recommends availing that credit rather than foregoing it.