REGARDING SERVICE TAX ON FREIGHT RELEATED TO EXPORT

[SANJEEV JADHAV]

Dear Sir, We are manufacturer and exporting our goods. We are paying service tax on inward as well as on ourward freight. My query is that while calculating service tax on GTA, can we deduct freight amount releated to export of goods. For example inward freight is 100000/- and Outward freight is 50000/- which includes Rs. 40000/- freight related to export of goods. Can we have to pay ST as per below: Inward freight = 10.3% on Rs. 100000/- = 10300.00 Outward freight = 10.3% on Rs. 10000/- = 1030.00 (50000 - 40000 = 10000) Is above calculation is correct ? Please also give clarification of Notf. No. 18 & 19/2009 dated 7.7.2009. For calculating service tax above is it necessary to submit declaration as mentioned in the above notifications.

AI Summary

Clarification on Service Tax Deductions for Freight in Exports: Exemptions, Refunds, and Cenvat Credit Explained A manufacturer inquired about service tax calculations on freight related to exports, specifically whether they could deduct export-related freight from the service tax on Goods Transport Agency (GTA) services. Responses clarified that service tax is payable on both inward and outward transportation, with specific exemptions and refund options available. One can pay service tax on only 25% of the GTA service charge, with the rest exempt. Refunds or exemptions can be pursued under specific notifications, requiring applications to the Assistant/Dy Commissioner of Central Excise. Cenvat credit is available for inward transportation, but not for outward transportation beyond specified limits.