SERVICE TAX CREDIT ON FREIGHT OUTWARD SERVICE

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 July 2010 HI, WE ARE A MFG.FIRM AND MY QUESTION IS DO WE TAKE THE INPUT CREDIT ON FREIGHT OUTWARD INVOICES (WHEN TRANSPORTER ISSUE A SERVICE TAX INVOICE WITH THE TAX) AND SET IT OFF AGAINST THE PAYBALE SERVICE TAX ON REPAIR AND MAINTENANCE SERVICES.

03 July 2010 Contentious issue.

If the goods are to be delivered at the customer's door step as per the contract, it can be treated as an input service and credit can be taken.

Departmental objection can not be ruled out.

03 July 2010 No, You can't take service tax credit on Freight Outward. You can take credit only on freight inward.




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