Service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2013 company sale to goods and company send material send to party location. for company saffer side company cover goods under Transit Insurance. and insurance company charge Service tax on Insurance ..... so my quesn is that company can avial cenvat credit on the same.

Rupesh Jain

Rupesh Jain (Expert)

21 June 2013 no its on goods out wards
and on goods outwads service tax not available

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2013 Can u tell me section on same ?????

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

21 June 2013 You can claim input credit for the insurance as per the Rule 2(l) of the Cenvat credit rules, 2004

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2013 Sir We have item sold to party only we are delerving to party ,,, for that our safty side we cover our goods by Insurance.... Insurance comapny charge and Service tax also charge so we can avail input. on the same.

Ganeshbabu K

Ganeshbabu K (Expert)

22 June 2013 amount paid for transit insurance and out ward frieght also is eligible for input service.

In Ambuja Cements v. UOI (2009) 20 STT 182

it has been held that if freight charges form part of assessable value, price is F.O.R. destination, if ownership of goods remains with seller till delivery at customer’s doorstep, transit insurance is borne by assessee and property in goods is not transferred till delivery at doorsteps of customer, outward transportation is ‘input service’ and is eligible for Cenvat credit

Thanks & regards
Ganesh babu k

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