We were awarded a contract and in this connection we have sub-contracted certain works to NRI company. On the payments made to the NRI (sub-contracted) we have paid service tax on reverse charge mechanism. The person who had awarded the work had reimbursed the payment of service tax made by us on the NRI payment. Our claim is as per the contractual provisions. Whether there is any mistake in our claim. Can law prohibits such reimbursement claim because it is service tax paid on the input service.
1. Service tax has been deposited for NRI sub-contractor by a company and 2. reimbursement has been claimed for service tax deposited from main contractor
Whether input credit for such service tax can be claimed by company?
CAclubindia
