Bill from clearing agent (CHA)

[Guest]

We have received bill from Our CHA ,

Bill are mentioning Reimbursement expenses for Inspection charges, Ware housing charges Logistics charges and any other handling charges for import.

Service Tax charges by third party who provided different services. and the vendor give a invoice cum Debit Note without charging service tax . He mention on his bill that he is hereby certify and confirm that he is not availed any service tax credit on all the above services charged reimbursed from 'X' on behalf of principal importer/Exporter. The party can avail the CENVAT credit on all taxable charged reimbursed to us.

My query is that We can take service tax as a input credit while vendor directly not charged service on bill , He just pass on service tax .

[Ganeshan Kalyani]

Certainty credit cannot be taken as services is not directly received.

[Rajagopalan Ranganathan]

Sir,

In your case the service tax paid by various service providers to your CHA can be taken as credit by the CHA and he can utilise the same for payment of service tax on the service provided by your CHA. But your CHA cannot pass on the said credit to you without availing the service tax credit by him (CHA).

AI Summary

Input credit entitlement limited where clearing agent bills reimbursements; recipient cannot claim credit unless agent avails credit. Question whether an importer can claim input credit when a clearing agent bills reimbursed inspection, warehousing, logistics and handling charges via invoice-cum-debit note without separately charging service tax. Replies state the CHA can take credit for service tax paid to third party providers and utilise it against the CHA's service tax on services provided, but the principal/importer cannot claim that credit unless the CHA avails and appropriately accounts for the credit; if the principal did not directly receive the services, the principal cannot claim input credit.