Service tax on exp reimbursement.

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ARJUN ASHOK (Querist)
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22 January 2014 a bill for professional Service is as below;
Service charge Rs.10,000/-
Travelling Exp Rs.3,000/-
Other Exp Rs.2,500/-
Food exp Rs.3,000/-
Grand total Rs.18,500/-
My doubt is, on what amount ST is to be charged?

AVTAR SINGH

AVTAR SINGH (Expert)
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22 January 2014 Service Tax will be charged on full amount of Rs.18,500. It is advisable to generate a separate invoice exclusively for reimbursement of expenses to avoid service tax on reimbursement.

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