Tax on re-embursement

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 December 2012 Hello sir/madam,
I am working with BPO international call centre. there is some company re-emburse the salaries of inbound employees and paying actual of company expenses for example:
rs 35000/- is company commission
rs 140000/- is employees salary. now i want to know service is applicable only on commission or on both? please let me know asap. thank you.

07 December 2012 Service tax is NOT levied on reimbursement of expenses.

Accordingly service tax shall be levied only on the amount of commission.



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