Cenvat Credit
This query is : Resolved
28 January 2010
Our company is engage in chemical manufacturing .and export the finished goods.
we have appointed one shipping company for transportation of material from India to other country .
the shipping company is sending our container through other shipping company .
we want to know that can we avail service tax credit on ocean freight .
our shipping company made debit note for ocean freight ,but they have not separate shown the amount of service tax .
they have only attached the onother shipping company invoice .
can we avail the service tax credit ?
we have appointed one shipping company for transportation of material from India to other country .
the shipping company is sending our container through other shipping company .
we want to know that can we avail service tax credit on ocean freight .
our shipping company made debit note for ocean freight ,but they have not separate shown the amount of service tax .
they have only attached the onother shipping company invoice .
can we avail the service tax credit ?
28 January 2010
yes , if shiping company is invoicing ur co. like
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
28 January 2010
yes , if shiping company is invoicing ur co. like
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
28 January 2010
yes , if shiping company is invoicing ur co. like
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
28 January 2010
yes , if shiping company is invoicing ur co. like
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
Freight chgs X
Service tax y
Than Otherwise there is no provision for cenvat without showing service tax amount in invoice
20 March 2010
please solve in detials
19 July 2024
Yes, you can avail service tax credit on ocean freight paid for exporting goods. Here’s how it works:
### Availing Service Tax Credit on Ocean Freight
1. **Nature of Service:** Ocean freight is considered an input service used in the export of goods. According to the CENVAT Credit Rules, 2004, input services that are used in relation to the manufacture or export of goods are eligible for availing CENVAT credit.
2. **Conditions for Availing Credit:**
- **Documentary Evidence:** While the shipping company's debit note may not separately show the service tax amount, the attachment of the invoice from the other shipping company serves as documentary evidence. As long as the invoice from the other shipping company clearly indicates the service tax amount charged, this documentation can be used to claim credit.
- **Rule 9 of CENVAT Credit Rules:** Under Rule 9 of the CENVAT Credit Rules, 2004, a service recipient can avail credit on input services even if the service tax amount is included in the invoice issued by the supplier of service.
3. **Procedure:**
- Ensure that you have a valid invoice or debit note from the shipping company.
- The invoice or debit note should clearly identify the service provided (ocean freight in this case) and indicate the service tax amount charged.
- Keep proper records of these documents for audit and verification purposes.
4. **Usage of Credit:** The CENVAT credit availed on ocean freight can be used to offset the service tax liability on output services (like other taxable services provided by your company) or on excisable goods (if applicable).
### Conclusion
Given that the shipping company has provided a debit note and attached an invoice from the other shipping company, which includes the service tax amount, you should be able to avail service tax credit on the ocean freight paid for exporting goods. Ensure all documentation is maintained properly as per GST guidelines to substantiate your claim during audits or assessments.
For specific advice tailored to your company’s situation, it's advisable to consult with a tax expert or Chartered Accountant familiar with GST and CENVAT credit rules.
### Availing Service Tax Credit on Ocean Freight
1. **Nature of Service:** Ocean freight is considered an input service used in the export of goods. According to the CENVAT Credit Rules, 2004, input services that are used in relation to the manufacture or export of goods are eligible for availing CENVAT credit.
2. **Conditions for Availing Credit:**
- **Documentary Evidence:** While the shipping company's debit note may not separately show the service tax amount, the attachment of the invoice from the other shipping company serves as documentary evidence. As long as the invoice from the other shipping company clearly indicates the service tax amount charged, this documentation can be used to claim credit.
- **Rule 9 of CENVAT Credit Rules:** Under Rule 9 of the CENVAT Credit Rules, 2004, a service recipient can avail credit on input services even if the service tax amount is included in the invoice issued by the supplier of service.
3. **Procedure:**
- Ensure that you have a valid invoice or debit note from the shipping company.
- The invoice or debit note should clearly identify the service provided (ocean freight in this case) and indicate the service tax amount charged.
- Keep proper records of these documents for audit and verification purposes.
4. **Usage of Credit:** The CENVAT credit availed on ocean freight can be used to offset the service tax liability on output services (like other taxable services provided by your company) or on excisable goods (if applicable).
### Conclusion
Given that the shipping company has provided a debit note and attached an invoice from the other shipping company, which includes the service tax amount, you should be able to avail service tax credit on the ocean freight paid for exporting goods. Ensure all documentation is maintained properly as per GST guidelines to substantiate your claim during audits or assessments.
For specific advice tailored to your company’s situation, it's advisable to consult with a tax expert or Chartered Accountant familiar with GST and CENVAT credit rules.
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