Service tax input on freight

Dear Gangatharan,

First of all, service tax paid on GTA and Car hire services under RCM is not eligible input credit, even for adjustment against service tax liability. So, I think the question of adjusting it against the excise duty payable doesn't arise. Hope it's clarified.

Yes, you can availed the input tax credit and same is also utilized the further payment of excise duty or service tax exclude RCN. And output service i.e. sale materials send by you through by transport or any kind of.

So there is no question for availment of input tax credit.

cenvet credit cannot be utilised for payment of service tax under reverse charge mechanism.

however tax paid on reverse charge can be utilised as cenvet credit for being set off with output tax payable

Yeah leave about car hire charges..

but for freight inward we can avail input tax credit. no issue on that.

so can i use that ST paid amount to discharge my excise liabilty.

and give some clarity regarding input tax credit on freight outward.

Thank u.

If input services are used in the manufacturing of final produts then you are eligible to take cenvat credit but you can not avail the cenvat credit of renting of cab. Outward transportation upto the place of removal is eligible. You can pay the excise duty from inputs, input services and capital goods used in the final product. 

yes service tax paid under reverse charge mechanism can be utilised as cenvat credit for excise duty liability

Thank you all....

Yes. You can utilize input service for making excise duty payment by way of CCR 2004. 

Further, with regard to GTA inward you have to pay and avail credit and use it for making payment of excise duty.

Availing credit of GTA is litigatable , if client is very aggressive you can otherwise better not to avail.

ST payment made for the services received as a Rent - a - cab service, credit cannot be taken as the same is in exclusion clause as per Input service definition as per CCR 2004.