Is service tax applicable on debit note raised

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2014 Dear sir,

Please clarify the following- My company is providing container fright station services while doing that we have to pay customs duty, port expense and container booking etc.. on behalf of my clients for that we are raising debit note - is it required to collect service tax on the above...

please clarify it sir...

early response is very welcommed

CS SAJU PHILIP MANALEL

CS SAJU PHILIP MANALEL (Expert)
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25 February 2014 It depends on the terms of the contract. if the contract provides for payment of so called expenses by you as part of your servcies, it may be taxable. On the other hand if the contract provides for the re-imbursement of such expenses being paid by you for and on behalf of the client (as an agent), it will be outside the term 'gross amount charged for the service' and hence not taxable.
regards