Service tax on director re-ibursement

Shubham Watta (Others) (42 Points)

16 September 2012  

Hi, 

i came to know that from now onwards all type of re-imbursements given to director against the expenses made on behalf of company will be charged Service Tax.Is it true ? 

Since We have to buy few things for our company from outside India like Web Hosting we have no other way, expcept credit card to pay the bills and Banks never issue credit card on the company's name.

So any of our director pay bills and we use to reimburse the payments.But if the above notification is true we have to add service tax on the payments made.

Can anyone guide on this what is the best way out of it.