19 December 2008
There is a company who are spending expenses on behalf of other com which is group com of that and is issuning a debit note note for that expenes. My qus is that should we add service tax on that amount on that rembusement. plz advise
19 December 2008
First of all the company which is incurring the expenditure should provide a taxable service. Go through taxable events under Business Auxiliary services. If it is taxable the other company need to pay service tax. But debit note is not a proper documents for charging/collecting service tax.
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