Cenvat Credit on Outward Transportation

[Ashok Chopra]

Dear All,

We being 100% EOU are despatching full loan container upto Port of Board.  Is Service Tax charged by Shiping Line and Transport can be taken credit as CENVAT. Is there any notification, clarification or judgement, pls let me know the detail of the same

regards

ashok chopra

[Snehal Kulkarni]

 

Dear Sir

If the Outward transportation falls within the scope as specified in the Circular No 97/8/2007, the the Service Tax Paid on outward Transportation can be availed as Input Credit.

You can claim the refund of such service tax paid. Please refer to the Notification No 17/2009-ST.

You can also opt to exempt from the Payment of Service Tax by following the procedure as mentioned in the Notification NO 18/2009-ST

Thanks

 

 

AI Summary

Cenvat credit on outward transportation can be claimed where services fall within the circular; refund or exemption options exist. Cenvat credit on service tax paid for outward transportation to port is claimable where the transport service falls within the scope identified by the relevant circular; the service tax charged by the shipping line may be availed as input credit or claimed as a refund, and an exemption route is available by following the notified procedure.