Service tax on freight

This query is : Resolved

hitesh kukreja (Querist)
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30 December 2013 M/s XYZ Ltd being a mfg company paid freight charges on purchase which is included in purchase invoice to M/s ABC(from whome goods have been purchases)
M/s ABC paid freight charges to transporter.
Is M/s XYZ ltd eligible for cenvat credit of service tax paid on freight.

CA DHEERAJ

CA DHEERAJ (Expert)
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30 December 2013 sir you said you (xyz ltd.) eligibel for cenvet credit or not

sir first you said who is paid service tax, if you paid service tax then you take cenvet credit other wise not

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 January 2014 Since XYZ has NOT paid any service tax, it is NOT eligible to avail CENVAT credit.

In this case, ABC Ltd has paid service tax and accordingly ABC Ltd. is eligible to avail CENVAT credit.

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