S.T. on Pvt. Transporter

This query is : Resolved

raval gitesh (Querist)
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22 April 2009 Dear Sir, I am in public ltd.co.in maharastra, we are deal with one pvt. transporter, we used for stock transfer to our depot and sale to our partites, the transporter is not regd.with service tax, so we paid service tax on behalf of transport app.Rs.7000/- per month, this amount is not deducted from transporter bill, we calculated as a consider 75% of bill amount and calculated service tax on 25% of bill amount. can we get a benifit of this service tax app.Rs.7000/- per month as a cenvat or service tax ?

Dayal

Dayal (Expert)
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22 April 2009 You car eligible for input credit only on the service tax paid on freight for stock transfer as it would be treated as inward freight.

For the service tax paid on outward freight for sale to your customers is not eligible in term of GTA provisions and Cenvat Provisions.

For better clarity on the aspect you may refer to the master circular