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

[YAGAY and SUN]

If your terms are Ex-work then you can avail the CENVAT credit on GTA output services and if the terms are FOR then only you can avail the CENVAT credit on the GTA output services, since the deifintion of input services had been amended, the phrase " from the place of removal" had been replace by the phrase " up-to the place of removal"

AI Summary

CENVAT credit on GTA services tied to delivery terms after amendment expanding scope up to place of removal.
Availability of CENVAT credit on GTA output services for outward transportation of finished goods hinges on the contractual delivery term (ex-works or FOR). The respondent affirms CENVAT credit can be availed in relation to the stated terms and cites an amendment to the input service definition replacing "from the place of removal" with "up-to the place of removal", which alters the scope for transportation-related input services.