Service tax on reimbursement of expense bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2013 we have purchased import material. can we take service tax credit on reimbursement of expense paid by clearing forwarding agent behalf of our liability.

please clear ...my query

Ganeshbabu K

Ganeshbabu K (Expert)
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30 November 2013 Yes cenvat credit can be claimed on re-imbursment expences..
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C&F agent not eligible to claim cenvat credit
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In case the reimbursement of expenses is claimed then care should be taken that CENVAT credit in respect of tax or duty included in the claims for reimbursement should be claimed only by the service receiver because expenses are incurred on his behalf and the agent (service provider) should not claim CENVAT credit for the same if the service provider claims such CENVAT credit then principal of agency will be failed.

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