Poonawalla fincorps
Poonawalla fincorps

Service tax charges on reimbursement charges

This query is : Resolved 

20 May 2016 Dear sir,

Sir, I want to know about service tax charges on reimbursement charges.
Such as- a agency company charges: agency charge 0.5% on import value Rs.100/-
and the agency company expenses some of amount for our company, such as- import permit collect, local transportation, loading & unloading charges etc. Rs.50/-.
Now the agency company charged Service Tax @ 14% on Rs.(100+50)=21/- and bill value Rs.171/-. is it correct or wrong.
Please guide me with service tax rules

20 May 2016 you have raise separate invoice for charges and exp. the service tax charges on your agency charges or clearing charges.

20 May 2016 It is correct service tax applicable on reimbursement of expenses.




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