Service tax help

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This query is : Resolved

surender (Querist)

30 April 2012 Dear Experts,
I have following doubts Please help me out of these.
. A company manufacturing products under loan license. The company Charge conversion cost as income,Company also pay for another running expenses like Salary & wages, Housekeeping, Repair & Maintenance, Transportation,Waste disposable. etc. These expense are on re-imursement basis.The company raise two type of Invoices One for Reimbursement of Expenses second for conversion Cost in both invoices are charged with service Tax.
1. Can company charge Service tax on reimbursable Expenses.
2. Is there TDS applicable on Expenses invoice under section 194C.
3. Expenses are reimbursable can we raise Expenses Invoice without service Tax.
Please refer with notification or Related cases if there exist any

Amol S Joglekar

Amol S Joglekar (Expert)

30 April 2012 01. Service Tax is applicable on this conversion cost under loan liscensing arrangement. 02. From the query it seems that although termed as reimbursement, they are not the reimbursement in its true sense. So ST is applicable on that as well. 03. 194C is applicable on NET amount of bill.

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