Service Tax Credit towards Reimb. to Contractor

This query is : Resolved

ASHISH (Querist)
Follow

30 August 2007 To Srinatha Sir,

As a mfg co we can get credit of service tax of excise payment

We have some fabricator contractor in company. some emps. are working under them

As per the contract, we have assured them to reimbers the insurance premium of emps.

Insurance company provied service bill to our contractor i.e. Bill In the name of Contractor. insurance company charged service tax in their bill.

Our contractor put the bill for reimbers the above exp with the final figer

So My Q. is that Can we get credit of the service tax which charged by insurance company?

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
Follow

31 August 2007 Dear Sir

Unless there is a pure agent agreement between you and your contractor within the meaning of Rule 5 (2) of Service tax (Determination of Value) Rules 2006, you can not claim CENVAT credit since you will not have the insurance bill raised on your name.