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Cenvat credit on freight

Service Tax (Legacy) 953 views 1 replies

We(say company A) are dealer of goods.Goods are purchased from manufacturer(say company B) and are sold to final consumer by us.

Company B sends us goods through road transport (say comapnay C i.e a  independent party) and charges us for the same through the invoice by showing road transportaion charges seprately after cost of goods in invoice issued by them.

It must be noted that although company C (i.e road transport agency) is paid by company B at first but later on that cost is borne by our company (i.e company A). 

My query is wether we (i.e company A) can claim Cenvat credit of service tax included in those charges (i.e charged by company C to company B) which are ultimately borne by us?

 

Replies (1)
Cenvat Credit on Service Tax paid on Inward Freight is available only after payment of such amount, subject to the condition that payment relates to input materials.However, rule is not clear on availability of such credit on service tax paid on outward freight.


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