Gst on reimbursement expenses
This query is : Resolved
SARJEET SHEKHAWAT
(Querist)
26 April 2018
my query is explain by an example let us start company 'A' and company 'B' .
company 'B' is service provider and Company 'A' is service receiver .
'B' raised a bill some expense and also demand additional amount of royalty , which was already paid to govt .
reimbursement of royalty is part of agreement so 'A' is liable to pay whole amount ( including Reimbursement of royalty ) to 'B'
my question is whether company 'A' is liable to pay GST on which amount .
company 'B' is service provider and Company 'A' is service receiver .
'B' raised a bill some expense and also demand additional amount of royalty , which was already paid to govt .
reimbursement of royalty is part of agreement so 'A' is liable to pay whole amount ( including Reimbursement of royalty ) to 'B'
my question is whether company 'A' is liable to pay GST on which amount .
CA R SEETHARAMAN
(Expert)
27 April 2018
A is liable to pay GST on whole amount including reimbursement. B has to claim ITC on royalty and pass it on to A.
SARJEET SHEKHAWAT
(Querist)
11 May 2018
thanks for your reply
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