Availment of Service tax credit on reimbursement expenses

[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

Eligibility for Cenvat Credit on Service Tax for Reimbursement Expenses by Clearing and Forwarding Agents Explained A participant inquired about the eligibility to avail service tax credit on reimbursement expenses charged by a clearing and forwarding agent. Two responses were provided. The first response clarified that if service tax is charged on these expenses, they become part of the service value, allowing for Cenvat credit if the service is an eligible input service. The second response confirmed that input service credit could indeed be availed on such reimbursement expenses.