MEANING OF ACTUALLY AND GENUINELY PAID BY THE CONTRACTOR

[RAM AVTAR]

In most of the tender clause says " However , in respect of SERVICE TAX , same shall be PAID by the contractor to the concerned department on demand and it will be REIMBURSED TO HIM by the Engineer in Charge after satisfying that IT HAS BEEN actully and genuinely paid by the contractor

In case of a company tax deposited through epayment, partial reverse charge and CENVAT.

Whether CENVAT credit of bill of sub contractor (either in partial reverse charge for full Credit) will also treated as service tax paid by contractor actually and genuinely

AI Summary

Reverse charge payment must be discharged in cash initially; Cenvat credit valid only if lawfully taken thereafter.
Contracts stating tax must be "actually and genuinely paid" require factual, honest discharge to government or equivalent lawful discharge. Cenvat credit usage equates to payment if taken in conformity with Cenvat Credit Rules. Under Reverse Charge Mechanism the tax must be discharged in cash first, with credit taken thereafter as permitted. Government reimbursements may require a duly certified challan. Contractors must ensure procedural compliance with Cenvat rules to validate credit-based discharges.