St on reimbursement of expenses


This query is : Resolved 

(Querist)
10 May 2013
reimbursement of exp 10000
service charge 1000
total 11000


My question is whether service tax is to be charged on 1000 or 11000 ??

10 May 2013 Reimbursement of expenses not subject to levy of service tax.

uma.. (Querist)
10 May 2013 But here we r not acting as pure agent

a profit of 1000 is made.

so service tax will be charged on 1000 or 11000

11 May 2013 taxable 1000
if all the conditions of pure agent satisfied

if acting as undisclosed agent, and charging lumpsum of 11000, then 11000 taxable.
if charging 1000 separately for the service you provided, then 1000.
charging 1000 more doesn't disqualifies from being pure agent, important is whether u charged as hidden profit in that 10000 or a separate fee for providing the service.


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