Dear friends,
As per the amendments, when we incur any expense of say Rs. 5 lacs, & if we get re-imbursement of the same amount, then do we need to charge any service tax.
What are the service tax implications on the same?
Regards,
Shyamal
CA Shyamal Mistry (M.Com, A.C.A.) (128 Points)
04 September 2012Dear friends,
As per the amendments, when we incur any expense of say Rs. 5 lacs, & if we get re-imbursement of the same amount, then do we need to charge any service tax.
What are the service tax implications on the same?
Regards,
Shyamal
Shridhar Shah
(Chartered Accountant in Practice)
(172 Points)
Replied 04 September 2012
Provide the details of whole transaction.
RAJU
(LEARNER)
(1089 Points)
Replied 04 September 2012
Hi,
Expenses incurred as a pure agent would be excluded from the value of service. Refer Rule 5 of Service Tax (Determination of Value) Rules, 2006 to get an idea of pure agent..