Service tax & TDS

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CA Sandeep Singh Rawat (Querist)
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15 April 2009 Hi. I have one Query.. Please help me in resolving it..
A Chartered Accontant Claims conveyance Expenditure(Conveyance Reimbursement) from His Clients.
1) Is Any Kind of service tax Applicable on it?
2) Is it subject to TDS? If Yes under Which Section & At which rate?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 April 2009 Gross receipts may be considered for service tax. Accordingly reimbursement is covered for service tax levy.
TDS is as per 194J.

CA Sandeep Singh Rawat

CA Sandeep Singh Rawat (Querist)
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CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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15 April 2009 Yes, service tax is applicable on entire amount including all such other cost as per Rule 5 of Service Tax Valuation Rules, 2006.
TDS is as per 194J.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 April 2009 Income tax is to be deducted on the gross amount of bill including reimbursement for actual expenses. CBDT circular no 715 reported in 215 ITR (St) 18, answer to question no 30 therein.

Reference of Mr Hanumantha Reddy may be read as rule 5(1) of Service tax (Determination of value) Rules, 2006.

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