I t c related quiries

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ARUN KUMAR (Querist)
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09 August 2018 Company having a project management consultant (PMC )for which company paying 1. Fixed remuneration for which PMC charging GST and company treating this as ITC.
Secondly, PMC spend some amount like 100 plus GST 18 for which PMC supplier issued GST Bill in the name of PMC. As per agreement terms PMC eligible for reimbursement of this expenditure.Accordingly PMC forwarding said bill along with request to Company for reimbursement of Rs.118/-
Here question is Company liable to reimburse Rs. 100 or 118 ?
If company reimburse ra 100 without considering GST since GST Bill issued by third party in the name of PMC is is wrong or correct

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2018 Company is liable to reimburse 118.
Reimbursement include taxes. Advice PMC to obtain bill on the name of the company with gstin.

ARUN KUMAR

ARUN KUMAR (Querist)
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09 August 2018 Here PMC taken bill form third party in their own name then how much amount to be reimbursed by Company, Here logic is PMC have option to take ITC

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2018 In such a case he has to raise a taxable invoice for reimbursement for 100(ITC pass on so invoice raised for 100) with 18% GST. ITC can be claimed on it by company.
GST applicable on such reimbursement.

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