We have entered into agreement with one event organizer to conduct an event to promote my company product. He purchased some equipments require, like induction stoves, and glass bowls and tissue papers, to conduct the event. In invoice he is giving like fixed cost: for reimbursement of expense for equipments separately and variable cost: for event conducting charges separately. But he is charging service tax @ 12.36% on gross amount ( fixed+variable) Doubt: here my doubt is does service tax is applicable for reimbursement of expenses?
Can anybody forward me the relevant notification/rule for this.
CAclubindia
