Availment of cenvat credit of tax paid on warehousing charges to storage faciilty provided by Transport and logistic company., Service Tax

[samiuddin ansari]

Hi...Good morning,

One unit namely, "A " has forwarded their finished goods to regular customer 'B" and they have agreement to deliver at manufacturing premises at another city. However, customer "B" does not require material from supplier every time the same quantity. To save the time, the unit "A" has availed and received the facility of storage of goods at Transporter and Logistics company say "C' in the same city of buyer. In return, the "C" company also issue taxable invoice for warehouse services to "A", who in turn, avail the cenvat credit of taxes paid on such warehouse facility services. It is requested to through some light on eligibility of cenvat credit of such tax paid as input services to "A" as the inclusive part of definition of input services prescribes "storage up to the the place of removal". In other words, whether cenvat credit of tax paid on warehouse facility provided by company "C" at another city is entitled to supplier of the finished goods i.e company "C".

Posts / Replies

[Ganeshan Kalyani]

input is eligible.

[YAGAY and SUN]

Since such services are in relation to furtherance of Business, Hence may be allowed for ITC.