courier service tax

[Asked by Guest]

R/sir, We are manufacturing unit , is Service tax credit elligible on Courier send outside ( other party ) ? Payment on courier bill with service tax & courier pary is register under serivice tax & document is valid but excise person disallow say that credit not elligible please guide . SNEHAL SHAH

[SANJEEV JADHAV]

Dear Snehal Shah,

Service tax on courier is righly eligible for taking cenvat credit. As per definition of input service, you can avail cenvat credit of service tax on all services which are directly or indirectly releated to your business. Please refer definition of input service and inform the excise person regarding eligibility of service tax credit.

[Snehal Kulkarni]

I agree with contention of Mr Sanjeev

 

AI Summary

Cenvat credit eligibility: service tax on courier services is claimable when courier relates directly or indirectly to business.
Service tax charged on courier services is eligible for cenvat credit where the courier supplier is registered and the service constitutes an input service directly or indirectly related to the manufacturing business; the claimant should rely on the statutory definition of input service and present that basis to the excise authorities to challenge disallowance.