Service tax on excess reimbursement of expenditure
This query is : Resolved
15 December 2009
It is well understood that expenditure incurred by C&F Agent shall not be included in Value of taxable service.
The reimbursement must be backed by documentary evidence of payment of cost.
Thus there is no tax on reimbrsed expenditure.
But if agent claims amount in excess of cost incurred on behalf of client then whether it is included in value of taxable service?
Whether whole amount or excess amount is to be included?
The reimbursement must be backed by documentary evidence of payment of cost.
Thus there is no tax on reimbrsed expenditure.
But if agent claims amount in excess of cost incurred on behalf of client then whether it is included in value of taxable service?
Whether whole amount or excess amount is to be included?
15 December 2009
Reimbursement mean basically production of documentary evidence but he is not produced it it taxable
15 December 2009
Please read Rule 5 (1) or the ST Valuation rules as well as rule 5 (2).
The exlcusion havce been made diufficult in rule 5 (2) and even genuine reimbursements maybe roped inot tax unless the Valuation rules are quashed.
The exlcusion havce been made diufficult in rule 5 (2) and even genuine reimbursements maybe roped inot tax unless the Valuation rules are quashed.
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