CA Sandeep Thakur (Managment Trainee) (188 Points)
17 August 2009whether the sevice tax applicable on out of pocket expeneses..
pleases tell with relevent text and qoutation ...
Satish
(CA Final Student)
(479 Points)
Replied 17 August 2009
Expenses reimbursed to a prue agent are not chargeable to service tax. Barring this, all other out of pocket expenses are includible in the value of service for charging service tax. See the rules https://www.servicetax.gov.in/value-rules.htm
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 18 August 2009
| Originally posted by :Sandeep Thakur | ||
| " | whether the sevice tax applicable on out of pocket expeneses.. pleases tell with relevent text and qoutation ... |
" |
Under the ST( determinationof value) Rules 2006 reimbursements are liable. The Rules however appear to gop beyond the section 67 which talks about value charged for such services. Preferable topay on the gross amount including the reimbursements unless excluded under Rule 5 (2) as pure agent.
AMIT
(STUDENT)
(43 Points)
Replied 19 August 2009
Yes As Per Sec 67,sub rule 2
If you are incurring these expenses in the capacity of pure Agent you can Get the reimbersement,without the Libility of S.T on them.
There are 4 conditionsas per said section to check the capacity of pure agent.
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