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Service tax input credit

Hiten Tita (CA) (57 Points)

19 April 2015

Hello,

Generally input credit for service tax paid on transportation charges from factory to client's place is not allowed. But can credit be taken for transportation charges paid for removing goods for export purpose from factory to port? Also can input credit be taken for charges in connection with export say port charges? If, yes under which rule or provision?

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2 Replies

NAVIN AGICHA (HELPING HAND) (1313 Points)
Replied 19 April 2015

You are talking about service tax or manufacturing, it seems you are talking about manufacturing, so no credit will be available from factory, and no credit at Port.

Hiten Tita (CA) (57 Points)
Replied 19 April 2015

Yes I am talking about manufacturing concern. CENVAT credit is available to manufacturers. But in case of transportation expense is paid on domestic sales no credit for service tax available. But in case of export place of removal is port. So can credit be taken for service tax paid on transportation charges from factory to port?