Is reimbursement liable for gst ( for the professional)
This query is : Resolved
02 August 2017
Dear Sir/Madam,
I need your assistance in finalizing Value of Supply of service Liable to levy GST
Mr. X is an Independent Insurance Surveyor and Loss assessorhold COP in ISSLA ( (Promoted by IRDA) .
He is getting professional fees for preparing assessment report in claims settlement .
SAC- Insurance auxiliary .
Under service tax regime he was charging ST on the Fees and Reimbursement both together.
Following items are usually showed in Fees bill ( Illustrative purpose only)
1. Professional Fees (calculated as per the slab rate given by concern authority on Estimated/Assessed Loss against each policy)
Re-Imbursements:
2. Local Conveyance
3. Digital Photo Charges
4. CD/DVD Charges
5. Courier Expenses
6. Travelling & Outstation Expenses
7. Miscellaneous expenses
Now Mr. X has been instructed by a “General insurance company” to charge GST only on the Professional fees portion and to not charge GST on Reimbursement.
Usually GIC’s will deduct TDS u/s 194J on the Total Value (Fees+ Reimbursement), and many times GIC’s has deducted TDS on (Fees+ Reimbursement+ Service tax). If Mr. X charges GST only on professional Fees but at the end of the Financial year 26AS will show the total amount credit including Reimbursement . There would be huge difference between amount reported in GST returns and 26AS. I assume Mr.X have to pay the GST on the Re-imbursement portion with Interest and Penalty.
Query: Is it correct not to charge GST on Reimbursement expenses. Give me any references if GST not to be charged on Re-imbursements.
I need your assistance in finalizing Value of Supply of service Liable to levy GST
Mr. X is an Independent Insurance Surveyor and Loss assessorhold COP in ISSLA ( (Promoted by IRDA) .
He is getting professional fees for preparing assessment report in claims settlement .
SAC- Insurance auxiliary .
Under service tax regime he was charging ST on the Fees and Reimbursement both together.
Following items are usually showed in Fees bill ( Illustrative purpose only)
1. Professional Fees (calculated as per the slab rate given by concern authority on Estimated/Assessed Loss against each policy)
Re-Imbursements:
2. Local Conveyance
3. Digital Photo Charges
4. CD/DVD Charges
5. Courier Expenses
6. Travelling & Outstation Expenses
7. Miscellaneous expenses
Now Mr. X has been instructed by a “General insurance company” to charge GST only on the Professional fees portion and to not charge GST on Reimbursement.
Usually GIC’s will deduct TDS u/s 194J on the Total Value (Fees+ Reimbursement), and many times GIC’s has deducted TDS on (Fees+ Reimbursement+ Service tax). If Mr. X charges GST only on professional Fees but at the end of the Financial year 26AS will show the total amount credit including Reimbursement . There would be huge difference between amount reported in GST returns and 26AS. I assume Mr.X have to pay the GST on the Re-imbursement portion with Interest and Penalty.
Query: Is it correct not to charge GST on Reimbursement expenses. Give me any references if GST not to be charged on Re-imbursements.
03 August 2017
Reimbursements are transactions in money and GST is not payable.
But the condition is that the reimbursement should not be paid on the bill of service provider but the amount should be paid directly against the bills of the expenses.
But the condition is that the reimbursement should not be paid on the bill of service provider but the amount should be paid directly against the bills of the expenses.
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