For Debit Note Service Tax is applicable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2011
Hi Sir,
I am working one of the IT service company at Bangalore. Recently we have outsourced two different kind of training services to two different vendors and they have executed the training service to one of client on behalf of Caritor. To execute the training service we have Issued PO from my company and towards the execution of training service. My company PO consist of Training charges Per day(INR) + Service tax and Reimbursement on actual with Statement of Accounts and Original Bills towards the expenses ( Local transport (Taxi Bills) and Interstate travel(Air Tickets) , Food )etc .
Vendors has performed Training service at client place and submitted the Training Invoice with Service tax and separate DEBIT note with Statement of Accounts and Original Bills to Caritor.
Now my company accounts Dept raised objection > need to add with service tax and TDS is applicable for above two debit note. I request you to confirm for Debit NOTE Service tax is applicable or not.
Looking forward for your valuable suggestion and advice as per the Indian Service Tax Laws.
Regards

Sreeni
Mob : 09886821955

CS Bijoy

CS Bijoy (Expert)
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13 May 2011 Service tax is applicable in debit note. However, please ensure that debit note contain all the details prescribed in Rule 4A of the Service Tax Rule, 1994.