Will service tax apply on reimbursement on expenses in case where separate bills are issued for services on which service tax is levied.
MAHENDRA IYER (SERVICE) (315 Points)
21 May 2008Will service tax apply on reimbursement on expenses in case where separate bills are issued for services on which service tax is levied.
Shekar
(CA & LCS )
(1109 Points)
Replied 21 May 2008
No...if there r seperate bills...no service tax on reimbursement..
S. Kumar
(Business)
(56 Points)
Replied 21 May 2008
Below is a message # 297 from ST Bangalore wherein the Joint Commissioner of Service Tax has given the clarity that reimbursements form part of Gross Receipts hence liable for inclusion in the value of Taxable Services:-
--- In stbangalore @ yahoogroups.com, "Commissioner of Service Tax, Bangalore" <servicetaxbangalore @ ...> wrote:
-
I have just come back after discussions withe Commissioner of Service
Tax on the two questions posed by you. I will answer both in this
mail itself.
To the question on whether exepnditures towards, food, travel. local
transportaion etc which is charged to and recovered from the
receipent of manpower supply services - the reply is that all such
values will form a part of the gros receipts and should be included
in the value of the taxable services.
To the question of taking of credit on the insurance, the
Commissioner has opined that as long as the value of this insurance
is charged to the recipient of the manpower supply services, the
credit of such an insurance (as indicated in your query) can be taken
by the provider of the manpower supply services
Best Wishes
JC (SYS)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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