We are a manufacturing company we are paying for transportation charges and Service tax on 25% of Tpt. charges.
are we eligible to take redit of Service tax paid by us on 25% of transportation charges
shriniwas (Accountant) (70 Points)
08 March 2013We are a manufacturing company we are paying for transportation charges and Service tax on 25% of Tpt. charges.
are we eligible to take redit of Service tax paid by us on 25% of transportation charges
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 09 March 2013
You can take cenvat credit of service tax paid on inward freight.
Department denying cenvat credt of service tax paid on outward freight. So you will have to consult your tax consultants in relation thereto.
Further, if you are doing exports, then service tax paid on outward freight from the factory to the place of port is allowed as in case of export, place of removal is port. there are lot of judgement in support of this.
Cenvat credit of service tax paid on outward freight (other than in case of export) is debateable by department, better not to take it. Nowadays lot of SCN is being issued to assessees over the sameissue alongwith demand for interest and penalty.. Take consultation from your CA before availing credit of service taxc paid on OUTWARD FRIGHT.
Thanks and regards,
Manoj B. Gavali
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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