Please help!!!

The CA firm where i am undergoing training charges Service tax on the entire fees and other expenses related to audit such as travelling expenses too. My query is that whether this is allowed under the act or not? Is service tax leviable only on the amount of fees? Please provide some case references if possible.

Replies (5)

If they will give separate reimbursement letter for other expenses incurred, then service tax can not be charged...

Yes this is allowed. The service provider may charge service tax on gross amount of bill including tarvelling exp.,out of pocket cost and other realated expense except material purchases.

Thts Right they can Charge service tax on the Entire Bill Including  Travelling and out of Pocket Expenses..

 

But its better to Raise a Seperate Debit Note for Travelling and out of pocket expenses...Instead of including them in the Bill along with Fees.. ( at least it will reduce the burden of Client).

Originally posted by :Nupur
" The CA firm where i am undergoing training charges Service tax on the entire fees and other expenses related to audit such as travelling expenses too. My query is that whether this is allowed under the act or not? Is service tax leviable only on the amount of fees? Please provide some case references if possible. "

hi...Nupur,
 

ur query is very good....as u r really learning yaar...grt.....all the best...

as in case to ur query, the service tax should be on all the fees and other exps...eg. if the fees charged is Rs.5000/- and out of pocket exps, Rs.350/- then, the service tax should be charged on total amt before ST to be charged i.e. Rs.5350/-  @ 12.36%.

okay...bye...with regards from Rajan..........

 

 

Originally posted by :Nupur
" The CA firm where i am undergoing training charges Service tax on the entire fees and other expenses related to audit such as travelling expenses too. My query is that whether this is allowed under the act or not? Is service tax leviable only on the amount of fees? Please provide some case references if possible. "


 

Hiiiiiiiiiiii

Value of Taxable service is Gross amount charged by CA firm and inclusion the exp. in value if incured by CA firm or during the providing services..

 

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