can we take ST paid in Reimbursement Expenses.

[Mahendra L]

Dear Sir.,

We are Reimbursement the travel expenses to the Marketing executives. In that Expenses we have ST, Vat. Now can we take this ST paid (reimbursed to employees Included in bill amt) for the purpose of CENVAT credit.

Eg: Hotel Bill for 2days -10000

ST (14%) 1400

Swachh bharath Cess(0.5) 7

Total 11407

Can we take this ST ₹ 1400 and Swachh bharath Cess ₹ 7 for CENVAT CREDIT.

Please clarify me with latest Cenvat credit Rules.

Thanking You.,

Regards.,

mahendra.L

AI Summary

Can service tax on reimbursed travel expenses for marketing execs be claimed for CENVAT credit? Opinions vary. A discussion on a forum addresses whether service tax (ST) paid on reimbursed travel expenses to marketing executives can be claimed for CENVAT credit. The query involves a hotel bill with ST and Swachh Bharat Cess. Responses vary: one suggests credit cannot be claimed as the expenses are reimbursed, another states credit can be claimed if the hotel bill is in the firm's name, and another emphasizes the need for a nexus with business activities. The final suggestion is to reimburse and claim as expenses instead.