Cenvat Credit query

This query is : Resolved

Yogesh Modi (Querist)
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10 April 2009 One of our service provider (say, A)has paid to courier company (say, B) = Rs 11236/- (Rs 10000 + 1236 as service tax) for courier on our behalf. Courier Company has raised the bill in services provider's name. Now We have received a Bill for Reimbursement from the service provider for Rs 12136/- marking as reimbursement of expenses attaching the photocopy of courier bill paid by them.

Whether we can claim the cenvat credit on the service tax amount in such case?

Dayal

Dayal (Expert)
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11 April 2009 Credit is eligible only when the bill is raised in your name by the service provider.

In the instance case you cannot take the service tax credit.

Moreover reimbursement is subject to service tax, whether you have entered into agreement with the service provider as your pure agent, if not then he is also liable to charge service tax on the gross amount.

But if your service provider is in a position to take the credit, then he need not charge you back, please evalute his process