Urgent st query

This query is : Resolved

kankit (Querist)
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23 October 2015 Dear experts,
Non executive director has paid cab hire bill, i.e 7000 fare charge and 5.6% ST 392, total 7392, now the company will reimburse this 7392 to director, i have two query about this...
(1) weather company is liable to pay ST under RCM on reimbursement to non executive director which was incurred for business purpose, if yes....
(2) weather company will pay ST under RCM on 7000 or 7392,

Thanx & Regard
Prachi Gupta

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 October 2015 No RCM applicable on such reimbursements.

kankit

kankit (Querist)
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23 October 2015 Drar sir, if no RCM applicable that means company is not liable yo pay ST however as per the ST rule ST is applicable on reimbursement to non executive director under RCM but in my case why no RCM applicable on reimbursement to non executive director, plz clarify in details it's really urgunt......

kankit

kankit (Querist)
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27 October 2015 dear sir, in your above reply you had suggested no RCM will be applicable that means company is not liable to pay ST under RCM on cab hire bill inclusive 5.6% ST while reimbursing this bill amount to non executive director, please reply why no RCM applicable in this said bill paid by non executive director. and basically ST is applicable on reimbursement to non executive director

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2015 ST is applicable on reimbursement of expenditure except in the nature of pure agent reimbursements.
No RCM applicable in case of bill is in the name of the company.

kankit

kankit (Querist)
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27 October 2015 sir the bill is in the name of non executive director hence RCM will be applicable and this cab hire service was taken for business purpose, the bill contain 7000 fare charge, 5.6% ST 392, total bill amount is 7392/- plz tell me weather company is liable to pay ST under RCM on 7000 or on total bill 7392 inclusive Service tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2015 As the bill is in the name of the director company is liable to pay service tax under RCM on the total bill.

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