banner_ad

Reimbursement of additional processing charges

This query is : Resolved 
Profile Image

Profile Image

(Querist)
14 May 2020 Dear Sirs/Madams,

>> Suppose there are 3 companies : A, B and C
>> A is a subcontractor for B for which B pays processing charges to A
B sells the finished goods to C
>> On account of the pandemic of Coronavirus, C asks B to pay some "additional/extra"
processing charges to A on equal sharing basis (Additional processing charges shall be borne
by B and C in the ratio of 1 : 1)
>>Suppose A raises a bill on B for additional processing charges of Rs.100 + 5% GST
>>As agreed, B will recover 50% from C. So, in this case, please answer the following:
(1) On which amount 50% shall be computed
(2) Please state the rate of GST (if applicable) which B shall charge on the 50% reimbursement from C
Thanks in advance.
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
14 May 2020 1 On Rs 100 50% will be claimed with 5% GST. ITC can be claimed on GST payment to A.
2 5% GST to be charged on C.
Profile Image

Manoj Chauhan

Profile Image

Manoj Chauhan (Querist)
19 May 2020 Thanks a lot, Sir! I really appreciate your reply.
Profile Image

Manoj Chauhan

Profile Image

Manoj Chauhan (Querist)
19 May 2020 One of my friends says 18% GST is applicable on reimbursement.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details