NO ST will be applicable if bills are in the name of company to qualify it as pure agent transaction.
Else if bills are in the name of director then company can not claim expenses of amount paid by director & in that case director has to raise invoice in the name of company with ST. Co. can claim cenvat of ST paid to director.
Thanks//Vaibhav Revert for more clarity. Use thank button to convey your appreciation.
04 December 2012
Further, travelling and hotel expenses reimbursed by the company to the directors. wherein Service provider are not the directors but hotel or travel agent etc and service tax, if applicable, already been paid. no service tax under reverse charge by the company.
04 December 2012
It is already elaborated.. I just want to tell you all services provided by the directors are covered under reverse charge. Here, what is the service which is provided by the director???
"Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as ‘consideration for the taxable service provided or to be provided’, and shall be included in the value for the purpose of charging service tax on the said service, if the expenditure or costs are reimbursed by the Service recipient."
04 December 2012
These cost & expenditure is not charged by the director but these are charged by the hotel or travel agent who is the service provider. Directors are not service provider in this case. they are getting reimbursement. The clause referred by you is applicable only for service provider i.e hotel owner etc. The directors have already paid service tax to hotel etc. It is purely reimbursement of expenses what is incurred by the directors and no service is provided by the Directors
CAclubindia
