Hi all,
Is reverse charge service tax applicable in case it is paid as reimbursement?
Eg. Comapny 'A' has incurred some freight expense on behalf of me and he has raised a reimbursement bill to me. In this case, what I feel is, co. A is the service receiver and he is liable to pay reverse charge to the Government.
The transporter is an established firm and has charged service tax on his bill to the co. A, if I pay reverse charge on this amount when I reimburse the same to A, I am making double payment of service tax to the Government (one thorugh his bill and the other on his bill).
What I would like to know is, are we liable to pay service tax through reverse charge to the government in case of a reimbursement?.
Regards/Suresh C. Kurup
CAclubindia
