INSURANCE INVOICE ISSUE AND SERVICE TAX CHARGE

[SNEHAL SHAH]

Respected sir,

We are Manufacturing of Engineering products. Our Sales order break up as under:

Rs.100/- total Sales price of Contract.

Invoice Issue as per Under :

Rs.75/- Finished Goods Material ( We are Manufacturing of goods )

Rs.10/- GTA Service tax Invoice issue

for service provide ( Actual we are not transporter but we are first issue Service tax Invoice and then after as and when material despatch we provide transport facility ) .

Rs.15/-  Finished goods Insurance Invoice issue against Insurance service provide by ( GENERAL INSURANCE COMPANY ) .

Now my question is that is that we are issue Invoice for reimbursement of Insurance amount and charge service tax on that ? I have raise question on the basis of that , we are not insurance service provider how i can issue invoice ?

Please guide in this issue and how i can reimburse our Sales billing breackup amount .

Thanks and Regards,

SNEHAL SHAH

 

AI Summary

Manufacturing Company Queries Service Tax Charge on Insurance Reimbursement; Advised as Excludible if Claimed as Pure Agent A manufacturing company is seeking guidance on invoicing and service tax charges related to their sales order, which includes finished goods, a service tax for transportation, and an insurance charge. They are not a transporter or insurance provider but issue invoices for these services. The query is about whether they should charge service tax on the insurance reimbursement. The response advises that if the insurance reimbursement is claimed on an actual basis for the buyer, it qualifies as excludible from the total value as it is considered an activity of a pure agent.