Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Urgent urgent very urgent

CA Shruti Gupta (CMA FINAL CS Final) (1434 Points)

03 July 2013

hi

whether out of pocket expenses is included in the remuneration of auditor and liable to service tax...

even tavelling exp. incurred by auditor which are remmbursed later is a part of remuneration.

Reply
Follow
Share

4 Replies

Rajat Poddar (Qualified CS and CA Finalist) (3355 Points)
Replied 03 July 2013

no.. they are not included in remuneration of the auditor..

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Momin Owais Ahmed (Audit Manager) (154 Points)
Replied 05 July 2013

If out of Pocket expenses are included in invoice then it is Liable to Service Tax,

However if the invoices of expenses are produce to the compay directly & Payment is made for the same then no need to charge Service Tax

1 Like

Aman (Finance Professional) (604 Points)
Replied 05 July 2013

agree wid CA Momin.. if there is a seprate bill for reimbursement then no need for service tax & to deduct TDS, but if the expenses are included in the common bill with the professional fees then service tax is to be charged & TDS on whole bill amt will be deducted..

1 Like

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 05 July 2013

I have perused all your valuable responses. It is important to comply with prescribed Rule 5(2) of Service Tax (Determination of value ) Rules 2006 as amended till date. Only if the provider acts as a pure agent of receiver, then reimbursement of expenses is not liable to service tax levy.

Regards,