Availment of Service tax credit on reimbursement expenses

[Asked by Guest]

Dear Sir,

Can we avail service tax credit as a input service on Reimbursement expenses charged by Clearing and forwading agent Service.Please explain,Please give us any reference regarding this,Thanks and regards.

[Ramanujam Varadarajan]

If service tax is charged on the Reimbursement of expenses, the expenses become value of service. If the service is an eligible input service for you, Cenvat credit can be availed on the same.

[Mahir S]

Yes, input service credit on the reimbursement expenses charged by clearing and and forwarding agent may be availed as input service credit

AI Summary

Input service credit: reimbursement charges with service tax form value of service and may be claimed if eligible.
When reimbursement expenses charged by a clearing and forwarding agent attract service tax, those reimbursed amounts constitute part of the value of service and, if the underlying service qualifies as an input service, the service tax paid on such reimbursements is eligible for Cenvat credit.