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Service tax credit adjust with freight service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2013 Hi, I am working in Private limited company situated in SEZ industrial area. we are transfer our material on consignment basis and given commission on sale. consignee company are raising bill for commission and charged service tax on commission. My question is that may i take credit of service tax charged by consignee on commission and adjust with inward & outward freight 100% service tax without taking abatment.

Hitendra Jain

Hitendra Jain (Expert)
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24 January 2013 For the first question the eligibility of service tax paid on commission for sale you are service receiver and the consignee charged service tax for providing Business Auxiliary Service.
Inward & Outward freight words are not clearly mentioned for the services associated with.
If you are liable to pay service tax to any Goods Transport Agency due to Reverse Charge Mechanism then obviously there is no question regarding CENVAT Credit. You are required it to pay to the government.

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