We have Handling & Transport contractor for unloading our materials from railway wagon and transport them to designated warehouses. For this the contractor is submitting bill for Handling charges with service tax and transportation charges. Serivce tax on transportation is being paid by us to the Government after claiming 75% abatement.
Now my query is that whether the service tax on Handling charges paid to the contractor can be claimed as credit while paying service tax on Transportation charges to the Government?
CAclubindia
