Service tax on reimbursement
shrikant (Accounts Manager) (44 Points)
24 June 2016shrikant (Accounts Manager) (44 Points)
24 June 2016
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 24 June 2016
As per the definition, consideration inter alia includes reimbursement. Hence ST is applicable on reimbursement too.
shrikant
(Accounts Manager)
(44 Points)
Replied 24 June 2016
Thanks to reply. Is it applicable on reim of 50% electricity and Telephone Exp? Whether this exp covered under Pure Agent? Please reply
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 24 June 2016
If such expenses are incurred in the capacity of pure agent (meaning given below), then ST is not applicable on such reimbursements. But this doesn't seem to be pure agent services and hence I think ST is applicable.
Pure agent: A person who