St on reimbursement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2015 Dear experts,
Plz clarify the ST applicability on reimbursement of exp. Incurred by contractor.....

Regard
Mohit sahu

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 November 2015 Service Tax has to be charged on reimbursement of expenses also.

IN the Finance Bill 2015, the Explanation to Section 67 - Clause (a) has been substituted. As per the new amendment, all reimbursement expenses incurred by the service provider, have to be included in the consideration.

The amendment is as below:

'(a) "Consideration” includes–

(i) any amount that is payable for the taxable services provided or to be provided;

(ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed;

(iii) ............................................'