Excise duty on outward freight / transit insurance

it depends on the point of sale i.e. when the ownership of goods transfer. if your PO says it is customer factory gate then you can claim credit of service tax paid on transpotor bills becuase then it will be considered input services. sale point is your factory gate then ans. is NO. Similar is the case with Insurance.

I agree with pkdian. It is the value at point of sale of removal of goods manufactured attracts excise duty. If your invoice is not showing any amount on account of freight and Insurance, then it is basically re-imbursement from your client. It is not sale on delivery basis. It is basically ex-works transaction. It depends on the nature of agreement you agreed upon with your client. In my view,now so far, GTA Service is concerned, who is receipient of service. If you are receipient, then it will attract service tax. If you are only paying on behalf of client and the freignt and insurance bills raised in favour of your client, then GTA service tax liability will be on your client.

sanjay

Dear Mr. Pkadian and Mr. Sanjay Kumar,

Thank you so much for sharing your valuable views.

I wish both of you a very happy diwali.