Credit of outward freight

[Guest]

if we are pay the service tax of GTA for inward freight and outward freight through GAR-7 Challans we also submitting the ST-3 Returns also my query is that shall we tale the credit of outward freight also or not if yes then please give me the releative case law for that. thanks.

[Guest]

By way of Amendment made to CENVAT Credit Rules (refer Notification 10/2008 CE(NT) dt. 1.3.08), outward freight is removed from the definition 'input service' and thus Service tax under GTA service on outward freight is not eligible for CENVAT credit.

AI Summary

CENVAT credit ineligibility: service tax on outward freight excluded after amendment, credit cannot be claimed. An amendment to the CENVAT Credit Rules removed outward freight from the definition of input service, and therefore service tax charged on outward freight under GTA arrangements is not eligible for CENVAT credit and cannot be claimed as input service credit.