service tax claim on GTA

[Asked by Guest]

Dear After deposit the service tax on freight inward/outward [on 25% amount] , can we get credit of such service tax amount & can be utilised for payment of excise duty payable.

[YAGAY and SUN]

Dear Shanker,

You can avail the CENVAT credit on the the service tax paid on freight Inward and for freight outward up to the place of removal.

Regards,

Pradeep Khatri

 

IN CASE OF FREIGHT OUTWARD >> FOR EXAMPLE  MATERIAL BOOKED THROUGH TRANSPORT  FROM DELHI TO PUNE  AND CUSTOMER LIFT THE MATERIAL FROM PUNE AND OWNERSHIP OF MATERIAL IS ALSO TRFNSFER   FROM PUNE.

IN THIS CASE PLACE OF REMOVAL WOULD BE DELHI OR PUNE.

[YAGAY and SUN]

In this case place of removal will be Pune as the ownership is being transferred pertaining to underlying goods at Pune.

[Surender Gupta]

Since place of removal is Pune, you can take credit of service tax paid on GTA From Delhi to Pune

[Suresh Kumar Agareal]

Yes, you can take Service Tax credit on freight paid inward/outward and utilize the same towards payment of excise duty.

                                                                                                           S.K.Agarwal

is there are any notification regarding service tax on freight outward can be claimed upto the place of removal ?

 

 

[YAGAY and SUN]

Kindly refer Definition of Input Services under Rule 2 (l) of the Cenvat Credit Rule, 2004 as amended times to time. 

"input service" means any service,-
	(i)	used by a provider of taxable service for providing an output service; or
	(ii)	used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,
	and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and  training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

AI Summary

CENVAT credit on freight services available up to place of removal and usable against excise duty.
Payment of service tax on freight services qualifies for CENVAT credit when such services are inward transportation of inputs or outward transportation of final products up to the place of removal, and that credit may be utilized against excise duty payable; the place of removal is the location where ownership of goods transfers.