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Service tax on reimbursement of expense
The seller aranges for transporter for the purchaser and then raises a debit note on the purchaser for the payments made by the seller to the transporter on behalf of purchaser. whether this would amount to Service and consequently ST.
Replies (1)
If no profit is derived by the seller out of the transactions then the seller would be considered as the Pure Agent of the Buyer and the liability to pay ST would not arise
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