Cenvat credit in case of freight outward.

This query is : Resolved

MITUL R SHAH (Querist)
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02 September 2016 Dear Sir,

I would like know regarding cenvat credit available for the service receiver under GTA rule.

i.e,. freight paid by company and service tax also paid by company under reverse charge mechinisam.

Regards
Mitul Shah

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2016 Cenvat credit available to the company on service tax paid under reverse charge provided it is input service. Outward freight can't be input service.

MITUL R SHAH

MITUL R SHAH (Querist)
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02 September 2016 Thanx sir for your kind consideration and replied.
As per the article of CS Aditya Singhania on dtd.18 March 2014 on CCI mentioned as per below in respect of cenvat credit in respect of freight outward.

As per circular no. 97/8/2007 dtd. 23 Aug,2007 may be referred wherein it is stated that if the following three condition are satisfied then only outward transportation is to be treated as input service, which are mentioned here-in-below

1) The ownership is with the seller till the doorstep of the buyer ;
2) The seller shall bear the risk of loss or damage during transit; &
3) The freight charge were integral part of the price.

And accordingly by satisfying the aforesaid conditions, a manufacturer paying the service tax on GTA service can avail the CENVAT CREDIT on outward transportation.

Regards
Mitul Shah

MITUL R SHAH

MITUL R SHAH (Querist)
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03 September 2016 Dear Sir,
Pls clarify the above article of CS Aditya Singhania. Can we take cenvat credit or not.

Regards
Mitul Shah

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 September 2016 See the notification 10/2008 CE(NT) dt 01/03/2008 on cenvat credit rules amendment. It is available up to the place of removal only.

MITUL R SHAH

MITUL R SHAH (Querist)
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03 September 2016 Thank you very much..Sir

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