GTA on outward Transporation Facotry to Customer

[MITSUI PRIME ADVANCED]

Dear Sir,

At Presently Practice , We have deposited GTA on Outward Transportation , (Finished Goods Removal from Factory Gate to Customer Factory )

our Price is Ex Facotry i means to say that  FOR (Door Delivery) not any other charge recieved from customer.

in this case we have Service Tax deposited properly than after Credit taken

This Practic is ok or not

Please provide your valuable advoice

 Regares

Arjun Sachdeva

AI Summary

Clarification on CENVAT Credit for Goods Transport Agency Services: Ex-Works vs. Free on Road Terms Explained. A company inquires about the correct practice for depositing service tax on Goods Transport Agency (GTA) services for outward transportation from the factory to the customer. They mention their pricing is ex-factory, indicating no additional charges from the customer for delivery. The response clarifies that if the terms are ex-works, they can avail CENVAT credit on GTA services. However, if the terms are Free on Road (FOR), CENVAT credit can only be claimed up to the place of removal, following a change in the definition of input services.