Refund of service tax - shipping line, Service Tax

[pradeep kataria]

Co. X engage G as CHA. G makes the payment to Shipping Line and get the reimbursement from Co. X. Shipping Lines raises Bill on G on account of Co. X which is mentioned on the bill also. The question is whether Co. X can claim refund of service tax paid by G to Shipping Line because the Co. x has made the reimbursement to G which includes service tax charged by Shipping Line. Please attach/cite relevant Notification etc.

Posts / Replies

[Nitin Bhisikar]

Yes, you can avail CENVAT Credit on this bill if Co. X is mentioned as recipient of service on bill of G, CHA. If this conditions fullfilled, then there is no bar under Cenvat Credit Rules, 2004.