Credit of service tax paid on freight after abatement

This query is : Resolved

CA Dipak (Querist)
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03 February 2012 we are company doing mfg. activity.we paid freight on input received by us. we paid s.t on such freight by taking abatement @ 75%.

1)now i want know can we avail credit of such s.t paid on freight.

2)we sale goods on consignment basis.we paid freight when good send to consignment agent and paid s.t on such freight by availing abatement @75%.can we take credit of such s.t as our place of removal is consigment agent place.?

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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03 February 2012 1. This is the case of inward transportation and therefore, you can take credit of the service tax paid on input received by you.

2. This is the case of outward transportation. In this case as per definition of 'input service' under Cenvat Credit Rules, 2004 outward transportation only upto the place of removal is treated as 'input service'. As in your case if place of consignment agent is place of removal then you can validly take credit....

Further in case 2, for excise duty purpose, outward transportation cost will be included in assessable value.

Arun Gulati

Arun Gulati (Expert)
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04 February 2012 CA Nikhil is right..

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Jagdish Bhalia

Jagdish Bhalia (Expert)
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04 February 2012 Agree with Nikhil Jhanwar

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CA Dipak

CA Dipak (Querist)
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04 February 2012 thanx for your valuable reply...
that means suppose freight inward and outward 100000 rs. than 100000*25%: 25000*10.3%:2575rs.service tax is payable in cash and now i can take credit of Rs.2575/- ...

am right or wrong?
plz guide me...

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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04 February 2012 You are absolutely correct...

CA Dipak

CA Dipak (Querist)
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06 February 2012 thanx to all...

bt i face practical diificulty bcoz till now co. had not take credit of s.t and s.t return was file on 15/12/2012.can i revised return.
we are manufacturer and hence we have have to filed er-1 monthly and v hv not saw in return s.t credit.

how to mange this problem can i now take credit of all s.t paid .matter related to this f.y only.should i show all credit taken in er-1 in month of jan -12 return and revised return of s.t?
plz guide me?

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