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Re-imbursement of expense is chargeable to service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2013 One of my client is into bussiness of Manpower Supply. He bills his clients for the Minimum Wages as per the Factories act, EPF & ESI. Along with this he adds his service Charges to the bill @5% on total billing.
The total portion of Salary/EPF/ESI is being paid to the beneficiaries and Service Charge portion taken by himself.
I want to know whether these re-imbursement of slaary/EPF/ESiare chargeable to tax, can he bill RE-imbursement seperately without DService Tax and Srvice Charges Bill sepeerately with Service Tax Element.
Kindly Advice.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

06 September 2013 reimbursement of actual expenses will not attract service tax but in the man power supply esi & PF is not treated as reimbursement , it is part of taxable value

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