Thursday, September 4, 2014

Can you take Cenvat Credit of Service Tax paid on Outward Freight?

Can you take Cenvat Credit of Service Tax paid on Outward Freight?
Yes, we can take Cenvat Credit of Service Tax paid on Outward Freight satisfying following 3 conditions.

(i) the ownership of goods and the property in the goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his door step;

(ii) the seller bore the risk of loss of or damage to the goods during transit to the destination;

(iii) the freight charges were an integral part of the price of goods.

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