Reimbursement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 our advocate gave us two bills one is for Legal Charges and another is reimbursement of the Advertising Expenses spent by him. kindly some one clear that is the service charge mechanism is applicable on reimbursement also ?. if not refer me the section.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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05 June 2013 In my opinion, legal charges alone is taxable in the hands of service recipient and advertisement charges will not be applicable though it is spent by advocate. If you are company, then only reverse charge applies.

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 Is there any cases on the above so that i can convince the department. on the issue

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Ganeshbabu K

Ganeshbabu K (Expert)
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05 June 2013 You can provide invoices copies provided by advocate for advertisement expences and can explain that expences were incurred by advocate as a pure agent on behalf of company,

and servicetax is not applicable on re-imbursement of expences it is also held by delhi high court in case of

intercontinental consultants and technocrats pvt ltd vs union of india,

Please refer below for detailed analyisis

https://www.caclubindia.com/articles/reimbursement-of-expenses-not-subject-to-service-tax--15929.asp

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 Advocate has given us the invoice in his letter head stating the that "Advertisement in news paper". if submit the news paper bill only it is clear that we can reimburse but he gave another invoice stating body that "Advertisement in news paper" now what to do

Ganeshbabu K

Ganeshbabu K (Expert)
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06 June 2013 Generally professionals use to provide re-imbursement expences claim like that only so it is re-imbursement expence only