Hi
We have paid Service tax towards Freigh Outward transporation. i.e we have cleared our finsihed products to customer place. Now service tax paid for the same (Freight outward) shall we avail the service tax credit for the same. If Yes, plese refer case law for the same.
Eligibility for Service Tax Credit on Freight Costs: Rule 2(l) Limits Credit to 'Place of Removal' Only A query was raised regarding the eligibility to claim service tax credit on freight outward transportation costs. The responses clarified that under Rule 2(l) of the Cenvat Credit Rules, 2004, service tax credit is only available for transportation expenses up to the 'place of removal.' If the place of removal is the factory gate, credit is not permissible for transportation to the customer's location. However, if the freight is included in the assessable value and excise duty is paid on that value, credit may be claimed if the customer's location is considered the place of removal. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
