Service tax

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  1. Pky

    Pky New Member

    What is possible that,s service tax credit on freightoutward if tax paid by MFG company?
  2. ZED

    ZED Well-Known Member

    Credit can be availed for outward transportation of the good upto the place of removal.
    If the place of removal is clients place only then credit can be availed.
    This would happen only if the sale is completed at the clients premise and not at MFGs factory premise.
    The risk of the good should be of the seller till the goods are received at the premise of the buyer. Only in such cases credit can be availed.

    Kindly note that as per Sales of Goods Act, if the goods are delivered to the transporter on behalf of the buyer then it can be termed as constructive delivery and hence sale will be concluded at the time of delivery of goods. This is by defalut, to override this risk should be borne by the seller.

    Further also check who is paying to GTA, because reverse charge is applicable and person who pays to GTA can claim the credit.
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