CENVAT Credit for service tax paid on transport of goods by

This query is : Resolved

Aditya M (Querist)
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29 February 2008 Dear Sir,

This is with regard to the availabity of CENVAT Credit on the service tax paid by a corporation on availing the service of a transporter of goods by road.. Cen credit be taken? Since the manufacturer is required to file the Service Tax, will he be able to get credit for it as an input? This is with regard to transportation from the factory to the clearing agent. I am aware that no credit may be taken for outward transpotation from the clearing agent to the customer. Thank You..

Jitender

Jitender (Expert)
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29 February 2008 this is a point of controversy.

Dayal

Dayal (Expert)
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01 March 2008 I do not forsee any controversy as stated by our learned friend.

By every means and as per the clarification awarded by the Master Circular, credit is eligible to the manufacturer.

It would be ideal to run through the circular for your better grip on the subject.

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Madhusudhan BS

Madhusudhan BS (Expert)
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01 March 2008 Cenvat credit can be availed on the GTA inwards. Some companies are also availing on the GTA outwards taking a technical point of view of the input service definition where in it is mentioned "clearance of final products form the place of removal". However the GTA has been removed from the definition of output service in the recent union budget and hence we may not be eligible to take any credit on GTA from this year onwards.