Service tax on reimbursement of exp.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2015 whether service tax chargeeable in invoice if reimbursement of Actual exp. as well as business income is charged in same invoice.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 October 2015 Service Tax has to be charged on reimbursement of expenses also.

IN the Finance Bill 2015, the Explanation to Section 67 - Clause (a) has been substituted. As per the new amendment, all reimbursement expenses incurred by the service provider, have to be included in the consideration.

The amendment is as below:

'(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) ............................................'

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2015 Dear sanjay sir,
BUT THIS REGARDING WHETHER ANY NOTIFICATION IS ISSUED BY THE CENTRAL GOVERNMENT OR NOT TO CHARGE SERVICE TAX ON REIMBURSEMENT OF EXP. AFTER AMENDMENT MADE BY THE CENTRAL GOV IN THIS BUDGET.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 October 2015 No separate notification required since the amendment has been made in the Act.