TaxTMI 
TaxTMI 
Circumstances under which credit of payment to GTA can be claimed
13 Feb 2006 
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Cenvat credit for outward transportation: freight to a GTA is creditable when linked to the output service or clearance up to place of removal.
A person registered for service tax may claim Cenvat credit for freight paid to a GTA when the expense qualifies as an input service under the Cenvat Credit Rules, 2004 - that is, where the service is used by a provider of taxable service for providing an output service, or used by a manufacturer in or in relation to manufacture and clearance of final products from the place of removal; outward transportation up to the place of removal is expressly included. (AI Summary)
A person registered for service tax may claim Cenvat credit for freight paid to a GTA when the expense qualifies as an input service under the Cenvat Credit Rules, 2004 - that is, where the service is used by a provider of taxable service for providing an output service, or used by a manufacturer in or in relation to manufacture and clearance of final products from the place of removal; outward transportation up to the place of removal is expressly included. (AI Summary)
When and under what circumstances a person regd. with service tax and paying freight to a GTA can claim credit thereof. What are the restrictions particularly with reference to place of removal. Quote of notification/circular details will be appreciated.