Man (Accountant) (77 Points)
04 February 2013We are seller of goods. We sold some material to our client & also arranged for transport. The transporter charged us with bill say Rs. 1000/-. So now we are liable to pay Rs. 31 as service tax (after abatement 75%). My questions are.
1) Can we claim this amount of Rs. 31/- as input credit ? if yes in which month?
2) If we wish to get this tranportaiton charges of Rs. 1000/- to be reimbursed by our client .The should we raise a debit note of Rs. 1000/- or charge it in sale invoice?
CA Saravanakumar
(Practice)
(59 Points)
Replied 06 February 2013
Sir,
1) Since You are availing abatement of 75%, you can not take the service tax paid on reverse charge basis as input credit. This is because, the underlying condition prescribed for availing abatement is Cenvat credit should not be taken.
2) In case of re-imbursments, whether you raise invoice or debit note all the particulars as contained in Rule 9 of Cenvat credit rules should be incorporated. Moreover, on the invoice raised by you, service tax should be charged unless you satisfy the conditions of Pure Agent.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
