Reimbursement of esi payment - service tax levied, tds

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PAROMITA DAS (Querist)
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22 December 2016 Hi Experts,

My consultant has charged service tax & other cess on reimbursement of ESI payments.

Can you help me by providing related information.

Also please let me know, how I will charge TDS on this amount? Do I need to charge TDS on reimbursement amount as well or on only consultancy fees?

Thanks

Riddhi Kadhiwala

Riddhi Kadhiwala (Expert)
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22 December 2016 Can you Please clarify whether single invoice prepared for fees & reimbursement expense or two separate invoce given by your consultant?
Service tax is not applicable on reimbursement expense. However, if your consultant has issued a single invoice to u mentioning his fees & ESI payment reimbursement then Service Tax will be levied on total. TDS will be deducted on gross amount.
However, practically, only obne invoice of consultancy charges is issued ny consultant. Service Tax & TDS will be applicable on it . For reimbursemnt expense, separate memo or note needs to be issued by him.