SERVICE TAX ON THC REIMBURSEMENT

[GURURAJ ACHARYA]

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 ?

[Manoj Joshi]

IF YOU ARE NOT TAKING ANY CENVAT CREDIT SO YOU CAN CLAIM THE SERVICE TAX REFUND ON THE INVOICES SUBMITTED BY THE AGENT..

[RadheyShyam Mangal]

CCE  Vs Subflag Iron & Steel (2010 (5) TMI 210 - CESTAT, MUMBAI)

 

[Dipen Shah]

In the given case, Your agent should take the credit of the service tax charged by THC and agent should bill the exporter cost amount i.e. THC + commission with service tax.

 

Accordingly exporter can claim the refund of the service tax so charged.

[r.rajkumar kumar]

i don"t think y can claim the service tax paid to to shiping liner . the exporter is eligible for some duty concession and local tax concession as per the customs and local tax act. Service tax paid to them may be treated as cost to to exporter. tks 

AI Summary

Service tax refund on terminal handling charges hinges on Cenvat credit treatment and invoicing structure. Whether service tax on terminal handling charges reimbursed to an agent by an exporter is refundable depends on treatment: if the exporter does not take Cenvat credit, they may claim a service tax refund on agent invoices; alternatively the agent may take Cenvat credit and bill THC plus commission with service tax, enabling refund claims; or the tax may be treated as a non refundable cost to the exporter.