Service Tax on Carriage Outward

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This query is : Resolved

P.Saravanan (Querist)

16 June 2008 1. Can we take the Cenvat credit on service tax paid for freight outward ?

2.What is the documentation procedure for availing Service tax credit?

3. Can we set off against the service tax payment if we have a positive balance in Excise duty and Customs duty credit.?

4. Can we claim the service tax paid on the house keeping contract to maintain the factory premises as clean?

5. Service taxes paid before the registeration is it eligbile for Cenvat credit ?

CA Anand Sarda

CA Anand Sarda (Expert)

20 June 2008 Since we are receiving services of GTA, we have to pay service tax on 25% of freight amount. This will become input credit for us which can be used for setting of Excise and Other service tax liability.

P.Saravanan

P.Saravanan (Querist)

20 June 2008 Thanks Mr Anand Please clarify No 4 & 5

Dayal

Dayal (Expert)

20 June 2008 1.Service tax credit is only eligible on Inward Freight. for outward freight you can tax credit upto the place of removal, for eg. removal from factory upto warehouse or depot, if factory is not the place of removal
2.Original Invoice have all details provided under Rule 4
3.Query is not clear, please elaborate
4.Yes you can take the credit of such services.
5.To take credit you should be providing services. If at the time of taking credit you were not registered it is assumed that you were not paying service tax.
If you intend to pay your previous dues then you can take the credit, however this would be debatable and relief granted at Tribunal level

Message likes : 1 times

P.Saravanan

P.Saravanan (Querist)

20 June 2008 Thanks Mr Dayal,

Q3. Shall we take the cevat Credit -excise duty/ customs to pay it off service tax liability ?

Q 4. Suppose if the company is manufacturing co, can they eligibile to take cenvat credit of service tax on the house keeping

Ajay Gumbar

Ajay Gumbar (Expert)

24 June 2008 3. Yes, Cenvat Credit on excise duty and customs can be used to pay the Service tax liability.( Refer to rule 3(1) of Cenvat Credit Rules 2004

4. Yes, a manufacturing company is eligible to take the cenvat credit of service tax paid on house keeping. (Please refer to Cenvat Credit Rules 2004 for further details)

Regards,

Ajay Gumbar.

P.Saravanan

P.Saravanan (Querist)

24 June 2008 Thanks Mr AJAY GUMAR