Hirirng of manpower

This query is : Resolved

Varun Sharma (Querist)
Follow

18 July 2013 We have hired Service Personnel from CISF(Govt. Agency) and 12.36% Service Tax in lieu of Petty Expenditure incurred by CISF and reimbursed by us.
Whether Service Tax is leviable on such reimbursement?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

18 July 2013 ser tax is not applicable on reimbursment of exp.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

18 July 2013 1)Service Tax on Manpower Recruitment Agents shall be the gross amount charged to the client for services rendered, excluding he amount incurred by the manpower recruitment agency on behalf of the client towards expenses which are reimbursed on actual basis.

3)Please note service tax is not applicable only if the amount expensed is on behalf of you for providing taxable service if it fails service tax is applicable.

4)When Service Provider incurrs certain expenses on behalf of Service Receiver and getting reimburshement from Service Receiver, such expenses does not form part of taxable services and not liable to Service Tax. Only thing is that it needs to be mentioned in the invoice that it is a reimburshement of expenses incurred on behalf of Service receiver

So there will be a responsibility to prove that amount paid was re-imbursment of "expenditure incurred on behalf of client"

Thanks & regards
Ganesh babu k

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Pushkar Nagda

Aayesha mulani

xavier

Thanwar Chhatwani

Anju Susan

Subscribe Now

Hirirng of manpower

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA