17 June 2016
If service provider charge from service receiver for the actual amount of expenses incurred by him such as conveyance, petrol, telephone etc. then Service Tax is to be charged on the reimbursement also.
But if the service provider charge from the service receiver a fixed amount on monthly basis for expenses like Rs. 25000/- every month for expenses to be incurred, then service tax is to charged on this amount(Rs. 25000/-) or not?
CAclubindia
