Service tax on reimbursement

              The point for consideration is regarding

reimbursement of telephone expenses to staff ,which

include an element of Service Tax. The reimbursement

is either the actual amount or the prescribed amount

whichever is lower. Though the telephones may be in

the name of respective employee, since the expenses

are borne by the Company it has to be ascertained

whether the company  is entitled to take Service Tax

Input Credit on such

reimbursements.