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Service tax on reimbursement of tax payment

This query is : Resolved 

14 September 2016 Sir,

A = Client
B = Chartered Accountant and have a Service Tax Registration Number

" A " don't have a net banking account, " B " paid rs. 120000/- as a tax payment on behalf of "A", after words "A" reimburse the same amount to "B", now my quarry is Rs. 120000/- applicable for Service Tax.

Please tell about this

Regards
Shailesh






14 September 2016 Service tax applicable only on reimbursement of expenses. Tax payment is not an expense hence service tax not applicable on it.



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