Seprate bill received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2016 two bill received one for fee and another for reimbursement of expenses from director sitting fee or advocate bill then under RCM whether company is liable for payment of service tax on fee and reimbursement of expenses also.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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02 February 2016 The Finance Act 2015 amended Section 67 of the Finance Act 1994 and the definition of consideration for taxable services was amended to include reimbursement of expenses. Therefore irrespective of whether a separate bill or a consolidated bill is given reimbursement of expenses fall under taxable amount. Extending the same to RCM reimbursement of expenses given to Directors / Advocates & Solicitors is subject to service tax and the service recipient has to pay 14.5% tax thereon in addition to say Sitting Fees or Professional Charges.