03 March 2009
Our firm is providing After sales services to Indian Customers for a firm based in USA who exports their machines to Indian Customers. Our firm claims reimbursement towards expenses incurred by our Engineers like travelling, salary, conveyance, proportionate office rent etc. and a 5% commission on the total expenditure incurred (which is basically our margin). Will the whole amount will be applicable for service tax (Including reimbursement amount) or only commission amount? Pls. Clarify. Thanks for your response.
CAclubindia
