Reimbursement of expenses paid abroad

[Yatin Bhopi]

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?

AI Summary

Reverse charge on cross border reimbursement of regulatory fees may apply, despite arguments about consumption outside India.
Reimbursement of foreign regulatory registration fees is contested: one position treats such reimbursements as non taxable because the services are statutory, consumed outside India, and tied to exported goods; the opposing position treats the foreign associate as a distinct person and contends the reimbursed fees are consideration for services taxable under the Reverse Charge Mechanism, with related debate on CENVAT credit and reliance on tribunal decisions and Board circulars.