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service tax query

Shikha Bajaj (CA ) (433 Points)

13 November 2009

Hi!

Pls any tell me. If a bill for professional fees is raised & the amt. of conveyance is to be mentioned in the same bill, then on which amt. the service tax will be charged- on professional fees only or on the amt. incl. reimbursement?

Shikha

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EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 13 November 2009

PLEASE GO THROUG THE RULE 4A

LINK : https://servicetax.gov.in/st-rules.htm

Rule 4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan -

(1)		Every person providing taxable service shall not later than fourteen days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of taxable service provided or to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely :-
	(i)	the name, address and the registration number of such person;
	(ii)	the name and address of the person receiving taxable service;
	(iii)	descripttion, classification and value of taxable service provided or to be provided ; and
	(iv)	the service tax payable thereon.

Provided that in case the provider of taxable service is a banking company or a financial institution including a non banking financial company, or any other body corporate or [any other person]⁷, providing service [to any person]²² in relation to banking and other financial services, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule.

Provided further that in case the provider of taxable service is a goods transport agency, providing service [to any person]²², in relation to transport of goods by road in a goods carriage, an invoice, a bill or, as the case may be, a challan shall include any document, by whatever name called, which shall contain the details of the consignment note number and date, gross weight of the consignment and also contain other information as required under this sub-rule.

Provided also that where any payment towards the value of taxable service is not received and such taxable service is provided continuously for successive periods of time and the value of such taxable service is determined or payable periodically, an invoice, a bill, or as the case may be, a challan shall be issued by a person providing such taxable service, not later than fourteen days from the last day of the said period.

(2)	Every input service distributor distributing credit of taxable services shall, in respect of credit distributed, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him, for each of the recipient of the credit distributed, and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following namely:-
	(i)	the name, address and registration number of the person providing input services and the serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1);
	(ii)	the name and address of the input service distributor;
	(iii)	the name and address of the recipient of the credit distributed;
	(iv)	the amount of the credit distributed.
	Provided that in case the input service distributor is an office of a banking company or a financial institution including a non-banking financial company or any other body corporate or [any other person]⁷, providing service [to any person]²², in relation to banking and other financial services, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered but containing other information in such documents as required under this sub-rule.

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nishant (student) (53 Points)
Replied 14 November 2009

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A. Kiran Kumar (Manager - Indirext Taxation) (156 Points)
Replied 14 November 2009

Dear Mr. Shikha Bajaj

The Taxable value should be included both professional fee and conveyance for the payment of service tax.

Please verify "Illustration-2&3 of Rule 5 of Service Tax (Determination of Value) Rules, 2006."

Sunil (Trader) (2611 Points)
Replied 14 November 2009

Reimbursements if claimed, should be claimed separately and only on what you incure purely as an agent of the principal. The bills should also be in the name of the principal. Conveyances are incurred by you during regular course to provide the service and therefore includable even if billed separately. If you are incurring any conveyance charges for what is not includable in your bill, you should ask the client to pay directly for these.