Credit availment on courier charges (inward / outward)

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This query is : Resolved

Ibrahim (Querist)

07 May 2013 Dear All,

Please do let me know whether we are eligible to avail cenvat credit against service tax on courier charges (Inward / Outward)

CA Vikas Acharya

CA Vikas Acharya (Expert)

07 May 2013 yes you are if you are using the courier service for providing your output service,
or if you are using the service in relation to manufacture excisable goods

Ibrahim

Ibrahim (Querist)

07 May 2013 We are using courier service for sending our finished goods to our customers.
So, we are able to get credit for such transactions?

CA Vikas Acharya

CA Vikas Acharya (Expert)

07 May 2013 no, reason:
1st of all your finished goods must be excisable goods on which excise is liable.

2ndly even if it is excisable goods with excise duty, a manufacturer is only allowed the credit of input service used in relation to the manufacture of final products and clearance of final products upto the PLACE OF REMOVAL.
and your customer's address is not the place of removal.

-from definition 2(l) of CCR

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