Expense Reimbursement

Balaji (Articled assistant) (38 Points)

05 April 2010

**Expenses reimbursed to Article Assistants by the auditee(client) is to be Debited to Staff welfare or Audit fees?**

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SACHIN KUMAR GARG (Final Student) (105 Points)
Replied 05 April 2010

reimbursment is never the part of neither fee nor salary. so. it will Dr. to respetive head like travling/telephone etc.

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 05 April 2010

Reimbursement is the part of service , FEW CASES , but in above said case no sevice tax applicable .

Nicky (Chartered Accountant) (245 Points)
Replied 05 April 2010

a) Reimbursement of expenses is a part of Auditors Remuneration as in it needs to be added to Audit Expenses

b) Reimbursement is leviable to Service Tax unless the expenditures are incurred as Pure Agent for Chartered Accountancy Services..

SACHIN KUMAR GARG (Final Student) (105 Points)
Replied 05 April 2010

But Nicky sir, reimbursment is expenses born by employee on the behalf of employer and letter payment is made to employee

Nicky (Chartered Accountant) (245 Points)
Replied 05 April 2010

Here in the given case the payment is by the Auditee who is not the Employer so the relation that you are talking doesnot exist

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