CA.Dharmender Ilwadia (CA) (62 Points)
13 November 2009Pl advise whether Reimbursement of Expenses like deposit of ROC fees or deposit of tax on behalf of the clients by a Practicing Company Secretary shall be included under the value of taxable Services under Service Tax, if billing for the same is done separately, for the purposes of determing the basic exemption limit under Notification No- 8/2008 dated 01/03/2008.
Thanx
CA. Dharmender Ilwadia
Avika, ACS
(HR Legal and Management Consultant)
(172 Points)
Replied 14 November 2009
Reimbursement of expenses are not considered in the value of services rendered for service tax purposes if they are billed separately.
Thanks & Regards,
Avika
Sunil
(Trader)
(2611 Points)
Replied 16 November 2009
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.
Gautam Joshi
(Partner)
(361 Points)
Replied 17 November 2009
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.
CA.Dharmender Ilwadia
(CA)
(62 Points)
Replied 17 November 2009
Thanx Gautamji
CA. Dharmender Ilwadia
CAclubindia
