01 November 2011
There is no dispute on taking of credit on inward transportation if you are manufacturer of excisable goods. For outward transportation, three conditions should be fulfilled as per CBEC circualr. These conditions are goods are sold FOR destination, damages during transit is on supplier of goods. Lastly, transaction value should include the transportation charges also. It means that the excise is paid on transportation charges also. Similarly, credit will be allowed on tax paid on import of service if it is input service for the service recipient.
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