05 September 2013
We are mfg as well service base company, we are providing services to the customers on per man day rate along with the traveling to and fro, lodging and boarding, local conveyance at their site and any incidental expenses in the bill. The amounts are separately shown us in the bill as mad day rate and reimbursement of expenses to the customers. My query is we are charging the service tax on man day rate but whether we will charge the service tax on reimbursement of expenses? please guide me and also request that please give us the clause or any rule for vice versa cases for charging the service tax why and not charging the service tax why? please answer on urgent basis
05 September 2013
You have to charge service tax on the full amount of bill. The cost incurred by in providing any service is a part of the value of service. The tax shall not be payable only if all such expenses are paid directly by the client.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case