Service tax credit

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Sandeep Katyal (Querist)
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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.

Sandeep Katyal

Sandeep Katyal (Querist)
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07 April 2016 NOBODY HAVE ANSWER

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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.

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