Reimbursement of expenses included in Service Tax

[Guest]

Dear Sir,

We are a mfg co, one of our Clearing and forwading agent provides us reimbursement bill separately under which he charges service tax. Following expenses such as Staff welfare (Tea,coffee expenses), Octroi taxes etc he is including all expenses under reimbursement expenses and charges service tax also, So in such case are we liable to avail such credit as a input service of Clearing and forwading service,please explain, and if we had availed such credit what shall we do,please explain,please give us any reference regarding this,thanks and regards

AI Summary

Company Seeks Clarification on Service Tax for Reimbursement Bills; Advised to Consult Intercontinental Judgment for Guidance A manufacturing company inquired about the applicability of service tax on reimbursement bills from their clearing and forwarding agent. The agent includes various expenses such as staff welfare and octroi taxes under reimbursement expenses and charges service tax on them. The company seeks clarification on whether they can claim this as input service credit and what actions to take if such credit has already been availed. The response advised consulting the Intercontinental Judgment for guidance.