IN CASE OF EXPORT SALES , TERMINAL HANDLING CHARGES CHARGES WITH SERVICE TAX CHARGED BY THE MAIN SHIPPING LINER PAID BY THE AGENT AND AGENT WILL CLAIM REIMBURSEMENT OF THE EXPENSES FROM THE EXPORTER.
WHETHER THE EXPORTER CAN CLAIM THE SERVICE TAX REFUND ON THE INVOICES SUBMITTED BY THE AGENT ?
Can exporters claim service tax refund on terminal handling charges? Debate on CENVAT credit and billing practices. A discussion forum addressed whether an exporter can claim a service tax refund on terminal handling charges (THC) reimbursed to an agent. One participant suggested that if no CENVAT credit is taken, the exporter can claim the refund. Another referenced a legal case for context. A third participant advised that the agent should take the service tax credit and bill the exporter, allowing the exporter to claim the refund. The final participant expressed skepticism, suggesting the service tax might be considered a cost to the exporter, who may be eligible for other duty concessions. (AI Summary)