29 December 2012
A company pays taxi bill on behalf of his agent which it recovers later on from that agent the question is whether the company is liable to pay service tax on it. plz suggest
The Tax is payable by the person who is originally availed the Services and not the by the person who is simply making payment on someone behalf.
If a Lady is going for the Service of his Car along with Driver and She left the Car @ Station with the Driver now the Service Recipient is the Lady not the Driver though bill has been paid by the Driver.
Crux; Company not liable though bill has been paid by them.
CAclubindia
