Credit of service tax under reverse charge

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Vijay Joshi (Querist)
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28 March 2015 Dear Sir

our client is manufacturer, they purchased goods from a vendor who arranged transportation facilities for them,and consequently vendor paid freight amount and service tax under reverse charge and claimed both components from client company as reimbursement.

now my question is whether the client company can take credit of service tax on reimbursement made to vendor????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 Yes it can be claimed.
cenvat credit of GTA service is available to a service recipient even though the service tax under reverse charge has been paid after claiming abatement of 75%.

Vijay Joshi

Vijay Joshi (Querist)
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28 March 2015 Dear SEETHARAMAN, thanks for your response, but here my question is different here vendor is liable to service tax and he discharged his liability also, but he claimed reimbursement of st paid from us so can we claim cenvat of such service tax which is originally paid by vendor and reimbursed from us.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 Yes it can be claimed that is what I specifically replied. You are the recipient of service and borne the service tax, you are only eligible to claim it.

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