11 August 2009
Dear Sir 1)While I am placing a candidate, I have to incur Hotel Stay Expenses for conducting interview, I have to pay to the candidate reimbursement of his travel expenses i.e train or air fare etc. These are all the expenses will be incurred for and on behalf of the Client. The Client will repay the amount after producing the necessary bills to the client. Apart from that I will raise a proper service tax bill for the services rendered i.e placement cost to the client. That also the Client will pay. Since I am doing placement for higher position, it is become inevitable to do the same of entertaining these types of reimbursement of expenses, which normally the client has to undertake, on a good understanding between me and the client. The Client will ask us to do the same and reimburse it to me after production of bills. Now my question is whether i have to pay the service tax for these reimbursement of expenses recd also? since i am a pure agent that's why i am asking this question. In this reimbursement of expenses I am not going to get anything. I am doing a post man work only. I am fully paying service tax for my placement bill. And my bill to the client will not contain the reimbursement of expenses. The Reimbursement of Expenses will be submitted to the client, in the form of statement only, attaching with the necessary bills. 2)Some times I may be asked by my trade friend to share some of the expenses example sharing of data, for which the service provider will raise a service tax bill to me. I will share that bill to my trade bill, for which he will pay. Actually on this point we are the ultimate consumers on utilising the services of the service provider. Shall I have to pay the service tax for the amount given by my friend for sharing? since I am treating this also reimbursment of expenses? 3)Amount paid by the foreign client in foreign currency for reimbursment of expenses for placing a candidate to the foreign company. Is that Reimbursment of Expenses also is also Service Taxable? kindly clarify
12 August 2009
12.08.09, Wednesday. Regarding my querry dt 11.8.09 on Service tax on reimbursement of expenses. When I see the answer it is just mentioned the querry is answered. I have not seen any answer. Please help me where is the answer or please reply.
CAclubindia
