Dear Sir, 1. A Ltd. Co. having export business, At the time sending goods from India to foreign b

[Asked by Guest]

Dear Sir, 1. A Ltd. Co. having export business, At the time sending goods from India to foreign buyer , co. has to incur service tax on Freight for Factory gate to Airport / port and sea / air frieght. My query is whether co. can claim service tax credit for both freight ot not ? Manoj

[Madhukar N Hiregange]

Yes it would be admiossible for the credit on both. Further if it were to get into a cargo handlign contract where the service provider loads, transports and unloads the cargo then the possibility of exemption under cargo handling maybe examiend.

AI Summary

Service tax credit on export freight allowed; examine cargo handling exemption where carrier loads, transports and unloads.
Input tax credit is admissible for freight charged on export movements both for factory gate to airport/port transport and for sea/air freight; however, where the service is supplied under a composite cargo handling contract including loading, transport and unloading, the possible cargo handling exemption should be examined as it may affect taxability and credit eligibility.