Service Tax Paid our Outwards Freight

[Zala Jaydeep]

As Paid Service Tax on Outward Freight then CENVAT Credit allowed or not.

AI Summary

Debate on CENVAT Credit Eligibility for Service Tax on Outward Freight: Experts Cite Circulars and Legal Rulings. A query was raised about whether CENVAT credit is allowed for service tax paid on outward freight. One expert stated that CENVAT credit is not allowed for output services like carriage outward, as it is considered an output service. Another expert cited a circular and legal rulings, arguing that CENVAT credit is admissible if the sale is on an FOR basis, where the transfer of goods occurs at the buyer's premises. A third expert agreed with the latter, emphasizing that outward transportation is not an output service for manufacturers and depends on the contract type.