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Service tax applicability

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Querist : Anonymous (Querist)
04 July 2016 If ABC company incurs for say internet expense of Rs 1000/- per month and the full amount it claims from XYZ Company its parent company and it raises a bill on 1,000/- on parent company and attaches the internet invoice behind it. Does ABC company is required to charge Service tax on it...????

04 July 2016 ABC should not raise Invoice on parent Co. Instead, ABC can raise of Memorandum for reimbursement of expenses.
ST is NA

07 July 2016 what if we raise invoice...??


08 July 2016 An invoice is a commercial instrument which a seller raises over buyer or service provider raises over recipient, for goods supplied or service rendered, which contains the claim made over such buyer or service recipient.
In your case, it is just reimbursement of expenses by parent company to its child company. There is no Creditor-Debtor relationship



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