18 January 2012
I am a practicing CA; If my clients gives cheque to me including his tax and my fees, shall i collect ST on the tax also claiming it as reimbursement? Another example, i am paying the taxes first from my account and later he is giving consolidated cheque to me. In this case, shall i collect ST on taxes also?
22 January 2012
In my view you are squarely falling under Rule 5 pertains to reimbursable expenditure incurred by the service provider as a pure agent of his client. Moreover, there cannot be service tax on statutory levies and it is better to show such tax paid separately in your invoice.
CAclubindia
