Whether under rcm service tax paayable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2016 whether under RCM any bill received from sitting director or advocate then whether service tax may be payable on reimbursement of expenses.

Ganeshbabu K

Ganeshbabu K (Expert)
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02 February 2016 1).“if the amount claimed in the reimbursement is not the actual amount incurred” then it would tantamount to service as it gains the nature of “service charge” and servicetax applicable,

2)If Proper documentary evidence and records (all invoices) are maintained for expenses incurred in behalf of Service recipient, then the service Tax may not be charged.