Cenvat cerdit on gta outward fright

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pankaj (Querist)
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20 December 2014 I have a little query in relation to service tax credit and have thus came to you for guidance. If a private limited company pays service tax on outward freight after reducing 75% abatement amount, is it eligible to take the credit of this service tax amount which is paid by the Company? The goods are transported from the company (i.e. Seller's) factory to the buyer's place. I would be obliged if you advise me in this respect. Thanking you. Regards, Pankaj Nashik

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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21 December 2014 as per Rule 2(2) of CCR rules cenvat credit of service tax payable on transpiration is allowed upto the place removal.

Further place of removal under section 4(3)(b) of central excise act covers only factory.

therefore, you cannot claim service tax on service tax on GTA from freight outside the definition of Place of Removal