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Reg Cenvat Cr on Warehousing Chgs and Regn

Service Tax (Legacy) 1603 views 5 replies

We are engaged in a freight & forwarding business as well as in warehousing & distribution services where we have taken the warehouses on rent & stores the material of our customers.  We delivered the material as per our customers instruction.  We billed the customer for two types of services (1) Warehousing charges under Storage & Warehousing Services (2) Transportation charges under BSS  The landlord of the warehouse raises the invoices on our Corporate office which is regd under the service tax under the narration "Warhousing Rental charges for the property no.................... for the month of ......".  This warehouse address is not regd under our service tax regn cert.  Can we claim the Cenvat on these invoices which are addressed on our corporate office.  Pls be noted the output invoices for the same is also being raised from our corporate office which is regd under the ST-2.

Replies (5)

warehousing is incidental service, one can not be permanent tenant of warehouse, so the credit is admissible.

According to your explanation warehouse from where you are providing service is not registered under service tax. This amounts providing service from a premises which is not registered. This is illegal.

And if you have centralized registration at corporate office and all the tax liability are discharged from there than according to me you can not avail the credit. As per my understanding you can trasfer the credit to corporate office for which you need to get registered as input credit distributor. Let others also comment on this point.

Regards

Dayananda

Thnx both experts but just want to clarify here to Mr. Daya, the reason not to register the warehouse is due to a temparory arrangement where the customer can breach the contract if we are not upto the service level as customer wants, in this scenerio we have to vacant the warehouse or used the same for other.  Further if we starts amending our ST-2 to add or delete the warehouses addresses, we have to file  for the amendment in  ST-2 on monthly basis.

Will be very pleased if you can provide a relevant extract of the law or any case justify the above.

Again thnx in advance for your valuable advise... & sharing.

you just have to issue invoice to your clients regarding service tendered from your registered office, not from warehouse, 

warehouse is an entity or stopage from where u r working at present, but if u like to issue slips/ delivery instructions / service oriented bills from the address of warehouse then surely u have to get it enrolled in your registrations, 

to overcome this situation u can issue the bill / invoice / all related documents from your registered office, and u can put a rubber stamp of warehouse address for identification only. ( if needed)

Thnx Mr. Sharma,

Totally agree with your suggestion & if you see my query above I also mentioned that we are raising the invoices from our regd office address under service tax not from our warehouse address.


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