Reimbursement of Expenses

Reimbursement of expenses are not considered in the value of services rendered for service tax purposes if they are billed separately.

Thanks & Regards,

Avika

Thanx Avika

CA.Dharmender Ilwadia

The expenses you have listed are incurred as a pure agent of the client and the bill from ROC etc. is to the client. They are not expenses incurred during the course of providing of the service and they shouldl not be considered as part of receipts. Rather than bill, simply claim it through debit note to the client.

Hi Dharmendarji,

Concept of Pure agent will simply hit by which you are not required to pay ST on it. Its nothing but the payment on behalf of client and on which there is no service provided by you. Better way of doing it is to done with seperate invoice only (which you have actualy done) to maintain control over it and to prove to the department the same at the time of assessment, if on doubt.

Warm Regards.

Thanx Gautamji

CA. Dharmender Ilwadia