Pass on entries

As per business transactions, Company A is renting a truck for transport Company B or anyone.

Before opting your service, a customer used enquiry about transport charges for renting a month which is inclusive of your FC cost, repair and maintenance, insurance so on. 

You raise invoice based on cost and fixed a tariff per km charges. If you asked again, it is not fair.

When a company B opting your service, they spent money on fuel, toll expenses, driver salary and bata so on. If you collect all these expenses from company B, what do they account in their business? 

They send all money to company A, you paid all expenses. You receive amount more than invoice you gave them right. What would you do at the end of the year. Will you show it in customer advance or debtor in surplus.

Transporter invoice under GST in RCM method. Please check this once again. If you take input ISD.

You can claim imbursement from company B. But can't available GST on insurance. 

Company B should deduct TDS too.

If the expense is a part of the supply of goods or services, GST is applicable on the reimbursement of such expenses.

For Instance: when you raise invoice for the month of January 2024.

Transport charges RS.1,00,000

Insurance charges RS. 8900

Taxable value Rs.1,08900/-

Then GST @ 18% RS.19602

Or seperately you can issue invoice as reimbursement with GST.

Originally posted by : Saravanan nagaraj
	Company B should deduct TDS too. If the expense is a part of the supply of goods or services, GST is applicable on the reimbursement of such expenses. For Instance: when you raise invoice for the month of January 2024. Transport charges RS.1,00,000 Insurance charges RS. 8900 Taxable value Rs.1,08900/- Then GST @ 18% RS.19602 Or seperately you can issue invoice as reimbursement with GST.

But though we are not an insurance company , can we make an invoice against insurance ??

Expenses that you reimburse from other company. Actually, you are not selling insurance policy to your customer or in thier name.

Insurance is transporter liabilities. But, you collect amount from your sister concern.

Do you think, Is there any logic to collect this amount from your customers?

If you receive money through bank. What would the income tax or GST treatment?