I want to know about the applicability of service tax on "reimbursement of expenses". i am distributor of unitech wireless(south)private limited. I give a salary to staff of unitech wireless working for me and i issue a free sim to retailer as per their(unitech) request. after unitech reimberse that expense to me.these reimbersement is comming under the service tax provisions. please help me
17 May 2011
all depends on the unitech accounting policy if uninor accounts the salary in his account for his employee and reimburse you for paying him from your account, then no service tax, but if uninor feels that the service is enjoyed by yourself and he did not mentioned the salary in his account, then service tax liable