TaxTMI 
TaxTMI 
Our Company is Registered under Service Tax for Transport Services By Road, we are the Consignor/Consignee not the GTA, Can we Claim Input Credit on Services Received by us for paying service tax on freight. We are claiming Exemption under notification no.32/04 dated 12/03/04 i.e is 75% of the taxable amount.
Input Tax Credit on Freight
23 Nov 2005 
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Input service credit may be claimed despite transport service exemption, subject to restrictions on input and capital goods.
A consignor/consignee registered for road transport service tax can claim input service credit on freight while availing the transport exemption, subject to a stated restriction on credit for input and capital goods. Respondents also note that GTA charges receive partial exemption and that Cenvat credit is available on inbound transportation; outward transportation treatment requires reference to the relevant service tax circular. (AI Summary)
A consignor/consignee registered for road transport service tax can claim input service credit on freight while availing the transport exemption, subject to a stated restriction on credit for input and capital goods. Respondents also note that GTA charges receive partial exemption and that Cenvat credit is available on inbound transportation; outward transportation treatment requires reference to the relevant service tax circular. (AI Summary)