Service tax query

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2015 Dear Seniors

I have a query in service tax Pl resolve if possible.

In our Company we have C&F agent. and Now C&F charge in their bill many expense like telephone bills, electricity bills along with service tax 14%

They argue that now amendment in section 67 defination of consideration change and include any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to proivve a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed

So in Telephone bill already charged 14% ST then why they demand on their total bill amount along with 14 %

it is double tax 14% + 14% ST on the company.

What is the solutions

Pl provide me the solution and what means of above language " EXCEPT IN SUCH CIRCUMSTANCES, AND SUBJECT TO SUCH CONDITIONS, AS MAY BE PRESCRIBED"

what is the meaning and other condition so that we can save the unnecessary burden on the company of Service Tax on 14% on C&F bill amount including reimburse of telephone bill

Regards
CS Vinit Goyal
M-9999426498

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 September 2015 Expenses incurred as pure agent need not be included for service tax calculation. Telephone bills, electricity bills and customs duty payments will not attract service tax if no profit element is involved in it.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2015 Dear Sir

Thanks for your reply for resolve my queries

But i wish to know that Pure agent condition are applicable to C&F agent and for pure agent condition establishment we have to make any pure agent agreement with our C&F ??

And what means by no profit elements is involved in it ??

Pl specify

Regards
CS Viint Goyal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 September 2015 Yea it is applicable to C&F agent no separate agreement is required.
No profit element means actual payment made is reimbursed.

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