Service Tax Paid our Outwards Freight

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..... As Paid Service Tax on Outward Freight then CENVAT Credit allowed or not. - Reply By CA Rachit Agarwal - The Reply = Cenvat Credit is allowed only for input service and not output service. Carriange Outward is an output service. Hence in our opinion the credit is not allowed. Further since the place of removal is your factor/ godown/ depot, hence the freight paid for the movement of goods fr .....

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..... om the place of removal upto the destination is an output service. - Reply By Mangesh Lokre - The Reply = As per CBE C Circular No 97/8/2007-ST dated 23-08-2007, Cenvat Credit on freight will be admissible if the supply is on FOR basis where the sale takes place at the premises of the buyer and possession of goods does not pass on from manufacturer to buyer till goods reach the destination. .....

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..... You may rely on Tribunal decision in ABB Ltd vs Commissioner ( 2009(15)STR 23 (Tri-LB)) and High Court ruling in Coca Cola India Pvt Ltd vs. Commissioner [ 2009 (15) STR 657(Bom)] - Reply By Brijesh Verma - The Reply = I agree with Mr. Lokre and strictly differ with Mr. Agarwal. Outward Transportation would never mean an OUTPUT Service for any manufacturer as he never provides the transp .....

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..... ort service. It basically depends on the type of contract as correctly mentioned by Mr. Lokre. If FOR Destination, then my opinion is clearly affirmative in this regard that CENVAT would be readily available in the present case. - Service Tax Paid our Outwards Freight - Query Started By: - Zala Jaydeep Dated:- 15-12-2010 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge .....

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..... Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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