Service Tax input on reimbursement of expenses

Queries 2963 views 3 replies

Sunil Kumar Pattnaik

Mgr. Finance

42 Points Posted on 03 February 2009

We are EPC Contractor and have engaged an agent for managing the import of materials. The agent pays to the Govt. Authority and service tax thereupon which we reimburse through a separate bill from the agent in which he does not charge any Service tax but mentions reimbursement of expenses and attaches the said paid bill of Govt. Authority. The bills from the Govt. Authority is in the name of our owner/Employer. Now as we have paid the agent and have custody of the paid bills to Govt. Authority, can we take cenvat credit on the Service Tax paid or not?

Please advice.

email: sunilpattnaik @ in.com

Replies (3)

krishna iyer

Sr.Finance Manager

197 Points Posted on 03 February 2009

as you know, there are 100+ services attracting service tax.

Under which category, the agent provides service and pays the service tax viz.customs huse agent or business auxiliary service .etc etc

If proper invoice is there, and the service is an input service for your activity, service tax credit is eligible. who pays the tax directly to the Govt is not relevant.

bhoop

account

99 Points Posted on 06 February 2009

We are in hospitality industry in Haryana. I have some confusion

1. We are taking 60% Abatement on Rent-a-Cab, so can we take input credit for the same

2. At the time of project installation service tax can be recovered.

3. Can we take of vat input on other than food items purchasing

Kindly providing some suggetions on my email bsjanghu @ gmail.com

Bhoop Singh

Ramada Hotel, Gurgaon (Haryana)

Guest

Originally posted by :bhoop
"	We are in hospitality industry in Haryana. I have some confusion 1. We are taking 60% Abatement on Rent-a-Cab, so can we take input credit for the same 2. At the time of project installation service tax can be recovered. 3. Can we take of vat input on other than food items purchasing Kindly providing some suggetions on my email bsjanghu @ gmail.com Bhoop Singh Ramada Hotel, Gurgaon (Haryana)	"