St on reimbursement to non executive director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2015 Dear experts,
Non executive director was staying in hotel for business purpose, hotel bill is contain 1500 rent charge and 105 ST total 1605, however company will reimburse rs. 1605 to non executive director and as per ST rule company is also liable to pay ST under RCM, plz guide me weather company is liable to pay ST on 1500 or on 1605 under RCM,

Thanx & Regard
Prachi Gupta

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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24 October 2015 Service tax would be applicable on Rs 1605/-. However to avoid double taxation either the hotel booking be made by and direct payment to hotel made by company or even in case of reimbursement to director the bill should be in the name of the Company...