Service tax credit on reimbursement expenses

Service Tax (Legacy) 2455 views 5 replies
If a company make a reimbursement to its C& F agent for certain expenses, which have been incurred on behalf of Company. Such expenses include the service tax whether company can avail tax credit on such expenses. Voucher is made on Company name only...
Replies (5)

If the C&F agent has incured the expenses on behalf of the company and expenses have been collected on actual basis which were later on reimburssed and also the billing is done in companies name, then there is no bar for the company to avail the credit of service tax paid by it on those reimbursable expenses as long as these services are used in providing it's output service.

In addition to what SIDDHARTHA SANKAR ROY  said. The service tax componant should be shown seperatly in Invoice. You will certainly get Credit of it.

i want to know whether any additional procedures are required for the same

If  Invoices are issued in the name of C & F Agent, in that case Service Tax Credit  is difficult.

However,. C & F Agent can issue consolidated Invoice Charging Service Tax on the Total Amount and on the other hand  take the credit of Service Tax on the basis of  Various Services treating In-put Service

In case when company reimbursed the exp to his agent and the service provider issued the invoice on the name of our Agent in such case can Company take service tax credit/refund(in case export) against excise????


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