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Service tax on reimbursement of expenses

This query is : Resolved 

23 August 2016 Hi
I have a 2 wheeler dealership business.
Whether Service tax is applicable on debit note raised on main company for expenses incurred on their behalf like sale promotion expenses on auto expo shows etc.
We are not providing any taxable service to this company.
Also clarify whether CENVAT Credit is available on the service tax paid to the event management firm as the whole amount of expense is to be reimbursed by the company.
Eg: event management firm raises a bill of Rs 50000 inclusive of service tax.
This amount paid of Rs 50000 is reimbursed by the company.What will be the treatment of service tax on the same?

23 August 2016 As you are not a service provider to the company, such reimbursements claim will not attract service tax.

23 August 2016 Thanks for clarifying sir.
Please also clarify whether CENVAT credit is available on service tax paid to the event management firm.


23 August 2016 Yes cenvat credit can be claimed by main company and bill should be in the name of the company.



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