Service tax on reimbrusements

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Sumit (Querist)
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08 April 2009 If a agency supplying house keeping services claims reimbrusements for house keeping material against original purchase bill (which the agencg must have got at time of purchase )submited by them and VAT is charged in that bill by seller (not the agency), can such agency charge service tax on whole purchase bill of house keeping material (for the Bill, for which they are claiming reimbursement). If yes/ no, under which section or notification.

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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08 April 2009 If the agency is selling the materials charging VAT on the invoices, then they should not charge service tax on materials sold.

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