Reimbursement of expenses included in Service Tax

[Asked by 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

[YAGAY and SUN]

Dear Sandesh,

Kindly check Intercontinental Judgment in this regard.

Regards

YAGAY and SUN

AI Summary

Input service credit entitlement when clearing and forwarding reimbursement bills include taxed expenses; verify precedent before claiming.
Whether input service credit is available where a clearing and forwarding agent issues a separate reimbursement bill that includes expenses such as staff welfare and octroi taxes and charges service tax on those reimbursements; the respondent advises consulting the Intercontinental judgment and reviewing invoicing and allocation to determine creditability and to reassess any credit already availed in light of that precedent.