Input credit of service tax paid on freight

[Guest]

Dear sir, Can we claim the benefit as Service Tax Input of freight service tax paid (even when abetment of 75% is claimed by the consignee)

[Surender Gupta]

Yes, you can calim the benefit of abatement of 75% in case service tax is paid by consignee. There is no doubt, provided you are getting the challan endorsed as GTA has not availed any Cenvat.

[Madhukar N Hiregange]

Yes credit is available from 1.1.2005. There is no restriction in the rules.

AI Summary

Input credit for service tax on freight permitted when abatement claimed, subject to endorsed challan and no Cenvat availed. Input credit for service tax on freight is available to the recipient where the freight payment challan is endorsed to show the GTA has not availed Cenvat; documentary endorsement and procedural compliance are required to support the credit claim, and no rule-based prohibition to such credit was indicated in the discussion.