Eligibility of Cenvat credit -Service tax charged on Freight charges (Transported by Vessels)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ligibility of Cenvat credit -Service tax charged on Freight charges (Transported by Vessels)<br> Query (Issue) Started By: - abc abc Dated:- 21-4-2016 Last Reply Date:- 21-4-2016 Service Tax<br>Got 1 Reply<br>Service Tax<br>Dear Sir/Madam, We have manufacture of packaging products and registered in Excise as well as Service Tax. We are importing our raw material from out of country and the clear....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance of the same, we have received several bills from CHA in form of Clearing charges, Handling Charges and Freight charges- transport by vessels (By rail container one port to another port in India). In this regards, we have received freight charges invoices -transport by vessels (By rail container one port to another port in India) from Container Corporation of India, where service tax charges ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by us on abatement value. (40% of Freight charges on service tax @ 14.50%) As per amendment in Notification No.26/2012-ST Dated 20/06/2012 through Notification No. 08/2015 Dated 1st March, 2015, there mentioned availment of cenvat credit on Freight Charges- transport by vessels are not allowed. Kindly advice us on this points please&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip; Regard....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s, NJ Reply By Ganeshan Kalyani: The Reply: Sir, the service tax charged by Container Corporation of India on transportation of goods by rail seems to be incorrect. The abatement has been rationalized to 70% and 30% of freight charges is taxable under service tax and not 40% as mentioned in your query. Further, the Notification no.8/2015 prescribes conditions that &#39;CENVAT credit on inputs,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004&#39; . This condition laid down is for the purpose of abatement on transportation of goods by rail service. As per Rule 2(l) of Cenvat Credit Rules &#39;&#39;input service&#39;&#39;, means &#39;&#39;any service used by a manufacturer, whether directly....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to..........procurement of inputs..........&#39;&#39; In my view you are eligible for cenvat credit as per above provision. However, I welcome views of learned experts as well. Thanks.<br> Discussion Forum - Knowledge Sharing ....