Cenvat credit of service tax on job work

[sanjay aggarwal]

An asseessee is having its factory located in excise free zone He has to bear the freight paid on raw materials & freight paid on finished goods. 1 At the time of inward freight, he pays service tax. Now at the time of payment of service tax on the outward freight, he wants to take credit of service tax paid on inward freight? 2.He also pays job work charges for getting his own material processed from some other factory. The job work bill include ser tax also. Whether he can take cenvat credit of ser tax on job work for payment of ser tax on outward freight ?

[Surender Gupta]

Absolutely no. There is no provision for availing cenvat credit for making payment of service tax on outward transportation by the recipient of services.

AI Summary

Cenvat Credit Not Permissible for Service Tax on Outward Freight in Excise-Free Zones: Clarification Provided An individual inquired about the possibility of claiming Cenvat credit for service tax paid on inward freight and job work charges to offset the service tax on outward freight. The individual operates in an excise-free zone and incurs freight costs for raw materials and finished goods. A respondent clarified that there is no provision allowing the recipient of services to use Cenvat credit for service tax payments on outward transportation.