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TMI BlogCENVAT CREDIT ON CARRIAGE INWARDX X X X Extracts X X X X X X X X Extracts X X X X ..... CENVAT CREDIT ON CARRIAGE INWARD X X X X Extracts X X X X X X X X Extracts X X X X ..... ep Khatri: The Reply: Yes, you may avail the CENVAT credit on the inward freight but the question is why the Cargo Company is charging the Service Tax on the freight amount. You are paying the freight and you are liable to pay the service tax accordingly in cash. Reply By Seetharaman K C: The Reply: Reverse charge mechanism specified under Notification 30/2012 dated 20-06-2012 shall apply in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of : Goods Transport provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-- (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in any part of India; (c) any co-operative society established by or under any law; (d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; Assuming that y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ou fall in one of these categories stated above, the Service tax has to be paid in cash by your organisation and then only you can take CENVAT on the basis of the challan making such payment Reply By JAMES PG: The Reply: If the said cargo company is not a Goods Transport Agency, reverse charge will not be applicable. In case of end to end logistic service provider, they may charge ST @12.36% on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total freight amount and the recipient can avail Cenvat credit subject to the eligibility as per CCR. If the Cargo Co is merely a GTA, they are not supposed to charge ST and the recipient of service is legally bound to pay ST under reverse charge mechanism X X X X Extracts X X X X X X X X Extracts X X X X
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