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Service Tax on Client Reimbursement

This query is : Resolved 

24 May 2010 Dear All,
We raised a separate bill for actual reimbursement expenses incurred on behalf of client on that we have charged 10% profit margin on actual expenses and we have charged service tax on margin amount .Is it right? or whether the service tax should be on gross amount i.e actual amt + margin?
Pls help.......

24 May 2010 Service tax to be charged on the entire bill amount, i.e actual amount + margin

24 May 2010 it should be charged on gross amount i.e. exp+ margin


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