ST Cenvat Credit utilization

[Guest]

we are manufacturer and exporter and we are paying service tax on inward and outward freight amount, payment of Comission to foreign

in this regard please clarify the following points

1. can we take cenvat credit in excise returns on inward freight & BAS

2. If it is eligble as cenvat can we utilize this credit to payment of duty on finished products

pl.guide us any provisions in this regard

 

thanks

srinivas

[Vivek Harsh]

inward freight used for services upto the place of removal shall be available.

Refer Rule 2 (i) of CCR, 2004

[NEERAJ KUMAR, RANCHI]

Dear Sir,

If you are a registered manufacturer and paying service tax on GTA and BAS, you must be registered under service tax also.

Any way if you are making payment of service tax to any other service provider and he is issuing bills to you indicating service tax , you can definitely take cenvat credit on those invoices.

But in respect of GTA it is not possible, in this case only you are liable to pay service tax and you can take cenvat credit of that also.

Although I have tried to answer your query as far as I could understand. However your question is not very clear to me. If your query not answered properly, come again writing your query more elaborately.

[MAHESH BIYANI]

credit of service tax gta can be taken

but can that be taken for service tax gta on inward and outward freight both

or only inward freight

 

also lots of transporters dont charge service tax on bills

so if the company has to bear gta from its pocket than whether the st gta paid can be clubbed ass freight or will that be provided for

 

[SHASHIKANT WATEKAR]

 definetly, u will take credit service tax on GTA & BAS & also utilised for payment of cenvat. not for service tax. but in this case pls. conform that your unit was registered with central excise & service tax (15 pan basis registration).

AI Summary

Cenvat Credit Utilization: Inward Freight Eligible Under Rule 2(i) CCR 2004, Outward Freight May Not Qualify A manufacturer and exporter inquired about utilizing Cenvat credit for service tax paid on inward and outward freight and commission payments. Respondents clarified that Cenvat credit can be taken for service tax on inward freight used up to the place of removal, per Rule 2(i) of CCR, 2004. If registered under service tax, credit can be claimed on invoices indicating service tax. While credit for service tax on Goods Transport Agency (GTA) is possible, it may not apply to outward freight. The unit must be registered with central excise and service tax for credit utilization.