service tax on reimbusement of traveling/out of pocket exp

This query is : Resolved

laxmi narain (Querist)
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25 November 2009 Dear Friends

Our Lawyer has submitted two separate bills one for the legal/audit fees and other for reimbursement of traveling and other out of pocket charges.

He is claiming service tax on both of them @ 10.30%.

So for as my understanding goes, service tax is payable on whole of the amount (legal/audit fees+reimbursement of traveling and other out of pocket charges), if a consolidated bill is submitted. If two separate bills are submitted as in given case then service tax is payable only on bill submitted for legal/audit fees and not for bill submitted for reimbursement of traveling and other out of pocket charges.

pl advice and give notification number if any.

thanking you

laxmi narain

ANIL JANGID

ANIL JANGID (Expert)
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25 November 2009 The Bar Council of India (BCI) recently sent a clarification to all lawyer associations in Pune that the service tax introduced for lawyers in this yearâ€™s budget is applicable only to legal firms and not to independent practicing lawyers.

please see that legal sevice provider is legal firm or independent layer.
If legal firm ask for consolidate bill