TaxTMI 
TaxTMI 
DEAR SIR,
A CARGO COMPANY IS CHARGING US SERIVE TAX ON THE FREIGHT OF MATERIAL. ie if the bill is of rs 5000/- he is charging us 618 ST. Can we get the the credit of Rs 618 or 25 % of the it.
Regards
Rohit R Rao
CENVAT CREDIT ON CARRIAGE INWARD
08 Nov 2012 
3 Replies 
11270 Views Asked by
Guest 
Reverse charge on goods transport services requires recipient to pay service tax in cash before availing Cenvat credit.
Cenvat credit on inward freight is available where the service tax liability is lawfully discharged. Reverse charge under Notification 30/2012 applies to road goods transport for listed recipient classes, requiring the recipient to pay tax in cash and take credit on the challan. If an end to end logistics provider charges tax, the recipient may claim credit subject to CCR eligibility; if a GTA does not charge tax, the recipient may be liable under reverse charge. Documentary proof of payment or invoice is necessary to support Cenvat claims. (AI Summary)
Cenvat credit on inward freight is available where the service tax liability is lawfully discharged. Reverse charge under Notification 30/2012 applies to road goods transport for listed recipient classes, requiring the recipient to pay tax in cash and take credit on the challan. If an end to end logistics provider charges tax, the recipient may claim credit subject to CCR eligibility; if a GTA does not charge tax, the recipient may be liable under reverse charge. Documentary proof of payment or invoice is necessary to support Cenvat claims. (AI Summary)