Credit of Service tax on outward GTA, Service Tax

[sukhvinder singh]

Respected All,

Sir Can i take the Credit of service tax on the freight (outward freight) of goods transportation by road paid by me.

please tell in details

 

Thanks & Regards

 

Posts / Replies

[Pradeep Khatri]

It is allowed up-to the place of removal.  As there was an amendment in the definition of the Input Services where as phrase 'from the place of removal' has been replaced by phrase 'up-to the place of removal' in context to GTA Services.

 

[phani raju konidena]

In accordance with the decision of the Hon’ble High Court of Karnataka in the case of CCE Vs. ABB LTD.,  (2011 (3) TMI 248 - KARNATAKA HIGH COURT) =2011 (23) S.T.R. 97 (Kar.) you can take the cenvat credit on ‘Outward Transportation’ on certain conditions viz.  when the ownership of the goods and the property remain with the seller of the goods till the delivery of goods in acceptable condition to the purchaser at his door step, the freight charges incurred by the manufacturer for such sale and supply at the door step of the customer are subjected to service tax and therefore, it falls within the definition of input service’ as the subsequent amendment by Notification No. 10/2008-C.E. (N.T.), dated 1-3-2008 substituting the word ‘from’ in the said phrase in place of ‘upto makes it clear that transportation charges were included in the phrase ‘clearance from the place of removal’ upto the date of the said substitution.