Input service credit - Reg.

[vinay wakde]

We have our owned Barges & Tugs. We have constructed  a jetty which is covered under minor Port. The jetty is exclusively used by us for movement of coastal cargo of finished goods & to bring the imported consignments of Raw material.  We are receiving service i.e. “Marine security service” for our ships as per “International Ship and Port Facility Security (ISPS) Code”which is mandatory. The ISPS Marine security  detect security threats and take preventative measures against security incidents affecting ships or port facilities used in international trade.

Presently, the service provider is not collected any Service Tax from us. However, during the Excise Audit of our factory, we have been asked to give name of the service provider with details of their Bills as per the Accounting ledger.

 Kindly clarify whether Service Tax shall be recovered from us on reversed charged method?  If the Service Tax recovered by Department from the service provider, shall we eligible for taking Input service credit?

Regards,

VINAY

AI Summary

Barge Company Faces Service Tax Query on Marine Security Services Under ISPS Code; Reverse Charge and CENVAT Credit Issues Raised. A company operating barges and tugs has constructed a jetty for exclusive use in coastal cargo movement and import activities. They receive mandatory 'Marine security service' under the International Ship and Port Facility Security (ISPS) Code. During an excise audit, they were asked for service provider details, as no service tax was collected from them. The query seeks clarification on whether service tax should be paid via reverse charge and if they can claim input service credit. The response indicates that the service provider must charge and deposit the tax for the company to avail of CENVAT credit.