25 February 2014
wheather reimbursement of petrol expenses to contractor in addition to monthly fixed hiring charges attracts any provision of service tax?? please answer asap
25 February 2014
There will be no service tax if it is proved that the amount was incurred on behalf of the contractee and proper receipts of expenses are attached with the invoice. We must remember that if the reimbursements amount (actual incurred) have been separately shown in the Invoice, and the service provider has proper documentary evidence to support the fact that the amounts incurred are reimbursement of expenses” then it would not be treated as a service charge but mere obligation of other met by service provider.
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