28 September 2012
The company has charged service tax on service provided by the company to the receipent of services. While providing this service the company incurred two other expenses which has been charged through a seperate bill. The two item includes : 1. goods purchased on be half of customer. 2. Fooding and lodging provided for the staff for carrying out the taxable service. Wish to know whether service tax is to be charged on this bill raised. Thanking you in advance
12 October 2012
Service tax is applicable on reimbursement of expenses also. however if such expenses were incurred in capacity as pure agent by service provider on behalf of service recipient then on these service tax is not applicable...
What is pure agent pl. refer Service tax determination of value rules....