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Service tax on reimbursement of freight

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 September 2011 Dear All,

We are reimbursing freight amount @ 1 % of sales to our distributors as per Co's policy with out any supporting documents.
Please clear , whether this reimbursement of freight amount is taxable as per service tax rule our not because we are debiting this expenses to freight account at the time of issue CN.

Regards

S Mullick



09 September 2011 with your accounting method, you are liable to pay service tax, as you are claiming expense of GTA freight in your books.


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