Service tax on inward freight ->out sourcing
This query is : Resolved
09 June 2015
QUERY: 1
Company A is a manufacturer and Company B is a job work (out sourcing) company.
Company A & Co.B has the agreement of JOB WORK Company A provides Raw material to Company B. Company B manufacture the final product with Co.A logo and returns to Co.A.
Here Company B charges Conversion Charges.
On receipt of Raw material,Company A is availing the cenvat indirectly through CO.B{ Excise regn in the name of Company B and onus of paying E.Duty (after adjusting the cenvat on behalf of Company A) is on Company B.
Here inward freight on Raw material reimbursement is made by Company A.
Whether Company A can avail the service tax benefit on this Freight on Raw materials which are directly going to the factory of Company B.
QUERY: 1
Company A is a manufacturer and Company B is a job work (out sourcing) company.
Company A & Co.B has the agreement of JOB WORK Company A provides Raw material to Company B. Company B manufacture the final product with Co.A logo and returns to Co.A.
Here Company B charges Conversion Charges.
On receipt of Raw material,Company A is availing the cenvat indirectly through CO.B{ Excise regn in the name of Company B and onus of paying E.Duty (after adjusting the cenvat on behalf of Company A) is on Company B.
Here inward freight on Raw material reimbursement is made by Company A.
Whether Company A can avail the service tax benefit on this Freight on Raw materials which are directly going to the factory of Company B.
10 June 2015
Hello Ramesh,
COmpany A can avail the credit of ST on freight inward if the Transport bill is billed to company A.
Co. A is also eligible to take ST on freight inward on transport of those converted materials brought from co. B to Co. A.
Regards,
Santosh G Kalburgi
9742022309
COmpany A can avail the credit of ST on freight inward if the Transport bill is billed to company A.
Co. A is also eligible to take ST on freight inward on transport of those converted materials brought from co. B to Co. A.
Regards,
Santosh G Kalburgi
9742022309
Message likes :
1 times
10 June 2015
can you provide some proof /notification covering this transactions.
10 June 2015
It is as per the cenvat credit rules, if company A is billed for the transport and the payment is made by it then it is within the scope of the cenvat credit rules. you can refer the Cenvat credit rules for cenvat credit of GTA.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
