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service tax on freight and cenvat credit thereon
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....ervice tax on freight and cenvat credit thereon<br> Query (Issue) Started By: - RAM SHARMA Dated:- 20-2-2017 Last Reply Date:- 22-2-2017 Service Tax<br>Got 10 Replies<br>Service Tax<br>Dear Experts, We are selling our goods through consignment agent and bear all the expenses like freight and commission. We are availing cenvat credit on freight and commission up to place of removal means up to con....
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....signment agent godown. By doing this, we are paying excise duty on such freight and commission because our price is inclusive of freight and commission. Now, we want freight should be bear by our consignment agent and take service tax credit theron. Further we want to given discount on invoice in place of commission. By doing this, we can save excise duty on such freight and commission. What will ....
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....be the legal implication by implement this procedure. Please suggest. Thanks & Regards Reply By KASTURI SETHI: The Reply: Dear Querist,. Your place of removal is Godown/Depot. You will have to include the element of freight from factory gate to deposit for the purpose of payment of Central Excise duty. Reply By KASTURI SETHI: The Reply: Discount is always given to customer. Consignment agent ....
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....is not your customer. He is your agent. There is a world of difference between discount and commission. Reply By RAM SHARMA: The Reply: Dear Experts, If we convert our consignment agent into dealer then it is possible. Please suggest. Thanks Reply By Ganeshan Kalyani: The Reply: Then entire transaction would be taxable. As of now it is stock transfer and no taxable. Reply By RAM SHARMA: T....
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....he Reply: When we will convert our agent into dealer then my dealer can take service tax credit on such freight. Thanks Reply By YAGAY AND SUN: The Reply: Availment of CENVAT credit on freight is subject to the definition of Input Tax Credit and Ciruclars, Latest Judgements as amended/notified/provided from time to time in CENVAT credit Rules etc. Reply By KASTURI SETHI: The Reply: Dear Quer....
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....ist, After going through all the replies and cross queries raised by you, first and most important aspect in this scenario is to determine place of removal. Reply By RAM SHARMA: The Reply: Dear Sir, When we will convert our consignment agent into our dealer then place of removal will be our factory and freight will be born by our dealer. We are doing all exercise in view of upcoming GST and c....
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....ost of benefit. Thanks & Regards Reply By KASTURI SETHI: The Reply: Sh. Ram Sharma ji, I concur with you. I appreciate your vision. Reply By RAM SHARMA: The Reply: Thanks for your appreciation Sir.<br> Discussion Forum - Knowledge Sharing ....