Dear expert
We are manufacture and multinational company. We export our products in foreign countries. To sell our products in European countries we required to register our product in certain authorities in Europe.
One of our associate company situated there paid the required registration fees and raised the bill for reimbursement of expenses made on behalf of us.
Please share your views whether Service tax is applicable on this reimbursement expenses under RCM and if payable whether CENVAT credit will be available to us?
Debate on Service Tax Applicability for Reimbursed Registration Fees Under Reverse Charge Mechanism Post-2016 Amendments A manufacturing multinational company inquires about the applicability of Service Tax on reimbursement of registration fees paid by an associate company in Europe for product registration. The discussion involves multiple experts debating whether such reimbursements fall under the Reverse Charge Mechanism (RCM) for Service Tax. Some argue that the fees are statutory, non-commercial, and related to exported goods, thus not taxable. Others contend that since the foreign subsidiary is treated as a distinct entity, the fees could be liable for Service Tax under RCM, particularly after changes post-2016. The conversation also references relevant case law and suggests raising the issue with authorities. (AI Summary)
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