Service Tax Credit of Transporter's Bill


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Querist : Anonymous

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Querist : Anonymous (Querist)
29 May 2010 Hi Sir

One of My clients are getting the bills from transporter which levy's the service tax of 2.59% (after ambedment of 75%) as per service tax.

My client has the service tax number,can i take the credit of the same.

Can you please help me with the treatment of the same in service tax.

Thanks & Regards
Ravi

29 May 2010 If the service provided by transporter to the client is an input service than you can claim cenvat credit for it

29 May 2010

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 June 2010 Hi

Even if the the transporter has charged at 2.58% (i.e. at ambedment rate) then also we can take the service tax credit.

In this case we can avail two benefits ..... and also when transporter does not charge the service tax and we pay on his behalf at 2.59% then we cannot take the credit we have to consider it as an expense.

So can you please provide the detail clarity as if the same can be considered for cenvat credit

Thanks & regards
Ravi

SAIBAL (Expert)
01 June 2010 Dear Sir,

If you are paying freight along with service tax to the transporter against there raised bills. And if the freight amount charged by the transporter is your inward service you can take cenvat credit. But do not for get to keep the copy of the paid bill along with money receipt of the transporter.


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