Cenvat credit on freight

962 views 1 replies

We(say company A) are dealer of goods.Goods are purchased from manufacturer(say company B) and are sold to final consumer by us.

Company B sends us goods through road transport (say comapnay C i.e a  independent party) and charges us for the same through the invoice by showing road transportaion charges seprately after cost of goods in invoice issued by them.

It must be noted that although company C (i.e road transport agency) is paid by company B at first but later on that cost is borne by our company (i.e company A). 

My query is wether we (i.e company A) can claim Cenvat credit of service tax included in those charges (i.e charged by company C to company B) which are ultimately borne by us?

 

Replies (1)
Cenvat Credit on Service Tax paid on Inward Freight is available only after payment of such amount, subject to the condition that payment relates to input materials.However, rule is not clear on availability of such credit on service tax paid on outward freight.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details