13 September 2016
I have received a invoice for reimbursement of conveyance expenses including ST. whether ST applicable or not on reimbursement of conveyance expenses.
13 September 2016
Service tax is applicable on Reimbursement. Section 67 is amended to specifically include reimbursable expenditure or cost incurred and charged by the service provider’ in the definition of the term ‘Consideration’
The Finance Bill 2015 (BILL No. 26 OF 2015) Amendment of section 67. 109. In section 67 of the 1994 Act, in the Explanation, for clause (a), the following clause shall be substituted, namely:— ‘(a) “consideration” includes– (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed; (iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket.’
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