Invoice or debit memo

Dear All,

Happy "New Year" to Every One.......

Here I have one doubt about the accounting treatment.

We need to get the reimbursement from our client, for that we need to submit an invoice to the client or raise the debit memo which one is correct this is the question for u and particulars r given below.

We are getting a business for that we travelled to our client (different branches) places and given a demo about our service now finally the client accepted the business from us and them given an opportunity for reimbursement of travel expenses also for the visit of branches of client.

Please keep in mind we are a small service provider and we are not registered under the Service Tax because of startup company and now please advise me which is best one either invoice or debit memo and we need to think about service tax point also (either affect the service tax or not).

Thanks in advance for your valuable answers and suggestion.

 

Replies (4)

Issuing the debot memo is the best one, it will not attract service tax.

Thanks for your suggestion

I think either way service tax will attract. However, since your company is SSP there is no requirement to charge service tax till the exemption limit exceed.

Hi,

The limit for service tax Rs. 10 Lakhs, Whatever u have done is a part of your services, hence, this cost has to included with the total of service provided.  As ur a small service provider then, no need to get registered with service tax.

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