Service tax on reimbursement

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Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2015 Dear all
as per the delhi high court judgement no service tax is applicable on reimbursement of expenses. but in FY 2015-16 if a service provider getting reimbursement of expenses like travelling. telephone. fuel. my Question is does SP need to charge ST on reimbursement of expenses incurred by him for providing taxable service.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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10 April 2015 if u had charged reimbursement in a single bill with the service, then service tax wil b charged on total amount

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2015 No sir. i have charged reimbursement separately in the bill of service, in this case whether ST is to be charge or not.

plz reply....

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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10 April 2015 u didnt got it

u had charged for the service and for reimbursement in the same bill na....

one common bill for both these na ??

if yes... then u have to charge service tax on both...

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2015 yes sir you are right. but is there any option to avoid ST on reimbursement of exp.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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10 April 2015 there is only one option to charge reimbursment exp in a different bill dear....

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2015 sir if i issue the separate bill for reimbursement of exp. then no need to charge ST na.......

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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10 April 2015 yes then u wil just claiming the expenses done on his behalf.. so no need to charge that

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2015 sir i have one more doubt. actually the company is giving RS. 3 per KM petrol exp.
suppose in one month i have claimed RS 5000 as petrol reimbursement. but i have incurred only 2100 in petrol. in this there is profit of 2900 even in this case no need to charge ST na...

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