Service Tax Credit of Reimb. of Exp
This query is : Resolved
27 August 2007
Can we get credit of service tax for the expence which we reimburs to our contractor?
As per the contract we gave them assurance for such payment
my email add : adthakkar@vvn.elecon.com
As per the contract we gave them assurance for such payment
my email add : adthakkar@vvn.elecon.com
27 August 2007
Clarify your query.
28 August 2007
Can we get credit of service tax for the expence which we reimburs to our contractor?
As per the contract we gave them assurance for such payment
For payment of Excise can we get credit of above service tax ?
As per the contract we gave them assurance for such payment
For payment of Excise can we get credit of above service tax ?
28 August 2007
The conditions for availing Cenvat credit of service tax are as follows:
1) The invoice should be in your (Company/firm/individual) name stating separately service charges, service tax, service tax regn. number etc.
2) The services has been consumed towards providing taxable services on which sevice tax is applicable or in manufacturing goods on which excise duty is applicable.
If both the conditions are fulfilled, you may avail the cenvat credit of service tax.
The conditions for availing Cenvat credit of service tax are as follows:
1) The invoice should be in your (Company/firm/individual) name stating separately service charges, service tax, service tax regn. number etc.
2) The services has been consumed towards providing taxable services on which sevice tax is applicable or in manufacturing goods on which excise duty is applicable.
If both the conditions are fulfilled, you may avail the cenvat credit of service tax.
28 August 2007
Hi Ashish,
Just to clarify ur point, Service Tax is not charged on re-imbursement of expneses.
Just to clarify ur point, Service Tax is not charged on re-imbursement of expneses.
28 August 2007
To Srinatha Sir,
As a mfg co we can get credit of service tax of excise payment
We have some fabricator contractor in company. some emps. are working under them
As per the contract, we have assured them to reimbers the insurance premium of emps.
Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.
Our contractor put the bill for reimbers the above exp with the final figer
So My Q. is that Can we get credit of the service tax which charged by insurance company?
As a mfg co we can get credit of service tax of excise payment
We have some fabricator contractor in company. some emps. are working under them
As per the contract, we have assured them to reimbers the insurance premium of emps.
Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.
Our contractor put the bill for reimbers the above exp with the final figer
So My Q. is that Can we get credit of the service tax which charged by insurance company?
29 August 2007
To Srinatha Sir,
As a mfg co we can get credit of service tax of excise payment
We have some fabricator contractor in company. some emps. are working under them
As per the contract, we have assured them to reimbers the insurance premium of emps.
Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.
Our contractor put the bill for reimbers the above exp with the final figer
So My Q. is that Can we get credit of the service tax which charged by insurance company?
As a mfg co we can get credit of service tax of excise payment
We have some fabricator contractor in company. some emps. are working under them
As per the contract, we have assured them to reimbers the insurance premium of emps.
Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.
Our contractor put the bill for reimbers the above exp with the final figer
So My Q. is that Can we get credit of the service tax which charged by insurance company?
17 October 2007
Any amount charged as reimbursement by the contractor will be subject to levy of service tax as it is in relation to providing the services.
The concept of reimbursement has been done away with, in view of the new Valuation Rules, 2006 w.e.f 18/04/2006 which state that value shall be the gross amount charged for the service
The service provided by the contractor ,if is in relation to the dutiable goods manufactured or notified taxable services provided then you can avail the credit of service tax so charged by the contractor
You cannot avail the credit of the service tax charged by the insurance company as the insuree is the contractor and not your goodself. Also the policy is in the name of the contractor
As per provisions of the Rule 4 you will not be eligble however the contractor can avail the benefit of the same.
You are eligble for the service tax charged by the contractor on his invoice on account of reimbursement of insurance charges.
Hope this clarifies your query
should there be a need for any additional clarification do let me know.
The concept of reimbursement has been done away with, in view of the new Valuation Rules, 2006 w.e.f 18/04/2006 which state that value shall be the gross amount charged for the service
The service provided by the contractor ,if is in relation to the dutiable goods manufactured or notified taxable services provided then you can avail the credit of service tax so charged by the contractor
You cannot avail the credit of the service tax charged by the insurance company as the insuree is the contractor and not your goodself. Also the policy is in the name of the contractor
As per provisions of the Rule 4 you will not be eligble however the contractor can avail the benefit of the same.
You are eligble for the service tax charged by the contractor on his invoice on account of reimbursement of insurance charges.
Hope this clarifies your query
should there be a need for any additional clarification do let me know.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Pass word to open justification report for Q1 for FY 2026-27
- Gift of mutual fund units to daughter
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- Not able to file ITR
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
