Cha service and tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 Dear sir
i m doing audit of one reputed cha company
they are charging service charges in the invoice only on that amount they are collecting service tax, other charges are showing as reimbursing expenditure
even they adding their margin on those expenses they are not collecting st on those expenses.
pleae advice me whether they liable on full amount or only service charges part
because they not acting as pure agent.

Ibrahim Shaikh

Ibrahim Shaikh (Expert)
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11 February 2013 Since the CHA is not acting as pure agent hence all the charges shown as reimbursement has to be charged for service tax.