Input credit for service tax payment on demurrage charges

We have made a payment of Demurrage/Detention Charges. As Service Tax is applicable of Detention, we have paid Service Tax on that (Rs. 250000/- Approx) also. Whether the payment of Service Tax on Detention charges can be claimed as input credit?

Replies (4)

the GTA service is used as ïnward service, then yes, if outward then no in simple words, ( allowed only if contract price is mentioned as inclusive of freight upto destination) 

Actually we have paid demurrage charges to Shipping Company (CMA CGM) for making delay in clearing of their containers. The contract was on CIF Basis. In that case, whether the payment of service tax is eligible for input credit?

if the demmurage taken place öut of territory of india"then service tax is not applicable, unfortunately you are eligible to claim service tax to the extent of freight shown in shipping bill only. ( as after it the shipping cost goes to out of territory of india)

Credit set off is a beneficial legislation to avoid cascading effect of multi point duyt/ taxes.

The credit on input services used for manufacutre or service is eligible. Inward receipt of material is a necessary activity for either. The credit should be available based on the valid invoice in the name of your company.

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