Service Tax on Expenses reimbursment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 One of our Man power outsourcing consultancy charging Service tax to us for the expenses incurred their staff during they render service to us. Please advice, whether can we relase the service tax portion to them or not? I argued with them, since it is an reimbursment of expenses and no service involved for this transactions. However, they are arguing about 12/2006 section. Can you please suggest me on that.

MK GUPTA (Chartered Accountant

MK GUPTA (Chartered Accountant (Expert)
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30 March 2010 Yes Dear

Service tax would be levied as it is the taxable service.

However You may took CENVAT credit for the same, if you are liable to pay service tax or excise duty.

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2010 Thanks Gupta...In such a case whether we can deduct TDS?

MK GUPTA (Chartered Accountant

MK GUPTA (Chartered Accountant (Expert)
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01 April 2010 Yes

You have to deduct the TDS

Remembr one golden rule, where service tax is involved
means service are rendered
Results
TDS liability