Service tax credit
This query is : Resolved
03 April 2016
PLEASE ADVISE CAN WE TAKE INPUT TAX CREDIT OF SERVICE TAX ON CHA & SHIPPING LINE BILL IN CASE OF GOODS EXPORT OUTSIDE INDIA IF YES PLEASE ADVISE UNDER WHICH NOTIFICATION.
07 April 2016
NOBODY HAVE ANSWER
24 July 2025
Regarding your query on Service Tax Credit on CHA and Shipping Line bills for goods exported outside India:
Can you take input credit of Service Tax on CHA & Shipping Line bills for exports?
Yes, you can take CENVAT credit of Service Tax paid on services received from CHA (Customs House Agents) and Shipping Lines, even if the goods are exported outside India.
Why?
Export of goods is treated as a zero-rated supply under the Service Tax (and later GST) regime.
Input service credits related to exports can be taken and either used for payment of output service tax or claimed as refund.
Relevant Notifications / Rules:
CENVAT Credit Rules, 2004 – Rule 3 allows input service credit for services used in relation to manufacture of dutiable goods or provision of taxable services.
Notification No. 1/2011-Service Tax dated 1st March 2011 – Clarifies that CHA services and shipping agency services are taxable services and service tax paid on them is eligible for credit.
Since export is zero-rated, you can avail credit on inputs and input services used for exports and claim refund under Rule 5 of CENVAT Credit Rules or utilize it against other service tax liabilities.
Summary:
Service tax paid on CHA and Shipping Line bills related to exports is eligible for CENVAT credit.
You can use this credit to set off against other service tax liabilities or claim refund.
Refer to CENVAT Credit Rules, 2004 and Notification No. 1/2011-ST for detailed provisions.
Can you take input credit of Service Tax on CHA & Shipping Line bills for exports?
Yes, you can take CENVAT credit of Service Tax paid on services received from CHA (Customs House Agents) and Shipping Lines, even if the goods are exported outside India.
Why?
Export of goods is treated as a zero-rated supply under the Service Tax (and later GST) regime.
Input service credits related to exports can be taken and either used for payment of output service tax or claimed as refund.
Relevant Notifications / Rules:
CENVAT Credit Rules, 2004 – Rule 3 allows input service credit for services used in relation to manufacture of dutiable goods or provision of taxable services.
Notification No. 1/2011-Service Tax dated 1st March 2011 – Clarifies that CHA services and shipping agency services are taxable services and service tax paid on them is eligible for credit.
Since export is zero-rated, you can avail credit on inputs and input services used for exports and claim refund under Rule 5 of CENVAT Credit Rules or utilize it against other service tax liabilities.
Summary:
Service tax paid on CHA and Shipping Line bills related to exports is eligible for CENVAT credit.
You can use this credit to set off against other service tax liabilities or claim refund.
Refer to CENVAT Credit Rules, 2004 and Notification No. 1/2011-ST for detailed provisions.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transport service POS
- To Whom the Invoice should be Raise to
- GSTR 9C- Table 9
- E INVOICE, E-WAY, INVOICE
- INCOME TAX NOTICE QUESTION
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Form 104 stamp paper deed
- Capital gain on sale of resident house by non-resident Indian
- Query Regarding Error in Establishing Connection with Traces WebSocket eSigner
- Sale Proceed of Urban Agri. Land received in Advance in FY 24-25 but Registry is made in next year
- Distinct person & regular person POS
- TDS- late filing - U/s.234E
- Assessee have two pan cards.unable to answer the reassessment proceedings due to non linking aadhar
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
