Reverse charge mechanism
This query is : Open
29 June 2016
Dear Experts, Could you please guide me on below issue please?
Our top level managerial people have spent few expenses during official visit at abroad in foreign currency. The expenses are in the nature of hotel bills, motor car expenses, other miscellaneous purchases in foreign currency incurred in abroad through Credit Card. As per Rules of Service tax, if any expenses are incurred specifically by employee for their own use, Service tax thereon will not be allowed as Cenvat Credit. Now my issue is that, As we are making Credit Card payment in INR towards these expense incurred in foreign currency , do we need to pay service tax on these expenses under reverse charge?
Our top level managerial people have spent few expenses during official visit at abroad in foreign currency. The expenses are in the nature of hotel bills, motor car expenses, other miscellaneous purchases in foreign currency incurred in abroad through Credit Card. As per Rules of Service tax, if any expenses are incurred specifically by employee for their own use, Service tax thereon will not be allowed as Cenvat Credit. Now my issue is that, As we are making Credit Card payment in INR towards these expense incurred in foreign currency , do we need to pay service tax on these expenses under reverse charge?
29 June 2016
credit card issue the PVT ltd or LTD company then its liability to pay all service tax on the company, and you are not liable under RCM.
My answer is usefull for you, pls send like.
My answer is usefull for you, pls send like.
29 June 2016
SIR my question is that : A private limited company foreign expenses by traveling in foreign for business purpose and payment through credit cards. so 2 issues involved
1. Whether Credit card payment by director is allowed as expenses without supporting bills.
2. Whether RCM apply on company for foreign expenses , because of these expenses paid by indian and service by foreigner .
1. Whether Credit card payment by director is allowed as expenses without supporting bills.
2. Whether RCM apply on company for foreign expenses , because of these expenses paid by indian and service by foreigner .
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