goods transport agency
This query is : Resolved
khushboo bothra
(Querist)
02 August 2010
Whether a manufacturing company is reqd to pay service tax on carriage inward or outward incurred by it?
sachin alwadhi
(Expert)
02 August 2010
U IT IS LIABILITY OF MANUFACTURER TO DEDUCT AND PAY THE SERVICE TAX ON BOTH CARRIAGE OUTWARD& INWARD.BUT HE CAN ONLY AVAIL CENVAT CREDIT OF SERVICE TAX PAID ON INWARD NOT ON OUTWARD.
SANJAY TALATI
(Expert)
03 September 2010
The Manufacturer if regd. as a factory or falling under the categories of the entities which are to take the regn. and comply the ST provisions is liable to pay the ST on both Inward & outward GTA.
Further, to add that he is eligible to take the CENVAT credit of the ST Paid by in respect of the GTA inward only as it is a Input service. He can avail the CENVAT Credit of outward transportation only if certain prescribed conditions are satisfied which include inter alia that the ownership of the Goods Cleared from the factory should remain with the seller, the goods in transit should be covered by the Insurance taken by the seller and as per the terms of the PO the seller has to deliver the goods upto the doostep of the purchaser.
In view of the above, it is to advise that kindly keep the records of the Inward & Outward Transportation and have the clear identity of the ST on both Inward & Outward Transportation.
Further, to add that he is eligible to take the CENVAT credit of the ST Paid by in respect of the GTA inward only as it is a Input service. He can avail the CENVAT Credit of outward transportation only if certain prescribed conditions are satisfied which include inter alia that the ownership of the Goods Cleared from the factory should remain with the seller, the goods in transit should be covered by the Insurance taken by the seller and as per the terms of the PO the seller has to deliver the goods upto the doostep of the purchaser.
In view of the above, it is to advise that kindly keep the records of the Inward & Outward Transportation and have the clear identity of the ST on both Inward & Outward Transportation.
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