Service tax charges on reimbursement charges
This query is : Resolved
SUBHASHIS DEY
(Querist)
20 May 2016
Dear sir,
Sir, I want to know about service tax charges on reimbursement charges.
Such as- a agency company charges: agency charge 0.5% on import value Rs.100/-
and the agency company expenses some of amount for our company, such as- import permit collect, local transportation, loading & unloading charges etc. Rs.50/-.
Now the agency company charged Service Tax @ 14% on Rs.(100+50)=21/- and bill value Rs.171/-. is it correct or wrong.
Please guide me with service tax rules
Sir, I want to know about service tax charges on reimbursement charges.
Such as- a agency company charges: agency charge 0.5% on import value Rs.100/-
and the agency company expenses some of amount for our company, such as- import permit collect, local transportation, loading & unloading charges etc. Rs.50/-.
Now the agency company charged Service Tax @ 14% on Rs.(100+50)=21/- and bill value Rs.171/-. is it correct or wrong.
Please guide me with service tax rules
Rupesh Jain
(Expert)
20 May 2016
you have raise separate invoice for charges and exp. the service tax charges on your agency charges or clearing charges.
CA R SEETHARAMAN
(Expert)
20 May 2016
It is correct service tax applicable on reimbursement of expenses.
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