19 January 2014
my client import raw material..n it pay pilotage n berthing charges to port..port also charge s.tax on it..n then my client get full reimbursement of that charges frm shipping co..so my ques is shall my client also charge s.tax on that reimbursement. .
If the shipping company is acting as a pure agent and incurring the expenses on account of you,then in my opinion such charges should not form part of the taxable value on the hand of the shipping company