Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Excise credit

Ankur Khandelwal (Student) (58 Points)

04 February 2012

Can manufacturer avail the credit of service tax on "freight paid on export"?

Reply
Follow
Share

3 Replies

Keval Ponkiya (CA CS MBA(Fin.) M.Com. L.L.B.) (223 Points)
Replied 04 February 2012

No ANKUR Sir, the assesse can not avail this credit because,

to avail cenvat credit, it is provided that the assessee can get the credit of SERVICE TAX up to the place of removal !!!

Upgrade to CAclubindia Pro. Subscribe Now!

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 February 2012

for manufacturer exporter the value isFOB or CIF, on which basis the ARE-1 is made ready, and upto the place of delivery the freight is qualified under input service and the assessee can avail the input credit on freight up to that point.

Mallikharjun (Deputy Manager) (304 Points)
Replied 07 February 2012

I agree with Mr. Sharma. The assessee can avail service tax up to the place of removal. But incase of exports, Board circular says that port area is the place of removal. So you can avail service tax credit upto the port. There are n number of cases in favour of assesee.