Cenvat credit on freight outward

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Anupam (Querist)
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27 June 2013 Hi
This is Anupam. I m working in a manufacturing concerns which also deals in spare parts with its brand name.My qustion is that whether the company can avail the the cenvat credit on Service tax on freight outward for the sales of the goods with its brand name.

Regards

Arun Kumar Singh

Arun Kumar Singh (Expert)
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27 June 2013 Service Tax paid on outward transportion upto the place of removal is eligible.

Anupam

Anupam (Querist)
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27 June 2013 i know about that fact for manufactured goods i want to know in case of goods purchased from outside agencies or vendor and sold from the factory with company's brand or labelling

Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 1)Service by way of transportation of goods by road is in negative list – except services of Goods Transport Agency (GTA) and Courier Agency

2)So you may pay for service tax on GTA only.

3)If you are responsible for payment of freight as per payment terms of transactions as per GTA rules you are considered as service receiver and you have to pay service tax as per reverse charge ..and on payment you can avail credit on services..

Service tax paid on GTA service for inward transport of inputs is eligible for Cenvat credit –

Kerala Minerals v. CCE (2010) 25 STT 80 (CESTAT SMB).

Thanks & regards
Ganesh babu k

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