cenvat credit of expenses reimbursed to c&f agent

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..... cenvat credit of expenses reimbursed to c&f agent
Query (Issue) Started By: - Paresh Angre Dated:- 21-12-2010 Last Reply Date:- 22-12-2010 Service Tax
Got 2 Replies
Service Tax
Dear all, Can an asessee get the cenvat credit of expenses reimbursed to clearing & forwarding agent? e.g. x a c&f agent pays any amount to mumbai port trust on behalf of the assessee. Mumbai port trust issue .....

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..... s the invoice in the name of 'x' x raises a debit note on assessee attaching all the bills of port trusts but does not mention the service tax amount and number in his debit note assessee reimburses such amount to c&f Can assessee get the cenvat credit? Thanks in advance. Reply By Brijesh Verma: The Reply: Dear Paresh First of all the it is not clear as to whether the C & F has charged any .....

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..... service tax or not. Moreover, it seems quite impractical in view of the Valuation Rules that the reimbursable expenses which are incurred to the C & F as a pure agent are being seen as taxable amount. Pls check vis-a-vis Valuation rules and specially in regards such pure agent expenses. Reply By Mangesh Lokre: The Reply: This is the practical difficulty faced by most of the assessees. In norma .....

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..... l course, the Manufacturing Company arrange a Freight Forwarder for clearing and forwarding of their goods ( either Export or Import ). This Freight forwarder used to avail the Services like CHA, Port Authority etc from others. These Service Provider raise the Bills in the name of Freight Forwarder who pays them on behalf of the Company. After departure/Arrival of the shipment, the Freight Forwa .....

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..... rder raises a Single Bill where he mentioned all the relevant Charges paid by him on behalf of the company. Now the question arises, what about the service tax paid. Since the Bill of the Freight Forwarder doesn't show these ST, the company cann't avail the Cenvat Credit of the Service Tax Paid. In such cases, you should ask the Freight Forwarder to raise the Bill on account of Company directly .....

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..... and can avail the Cenvat Credit of Service Tax Paid as an Input Service. If the amount involved in this is very huge then may appoint the different agencies. But this seems to be difficult in view of co-ordination.
Discussion Forum - Knowledge Sharing .....

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