Service tax

Queries 790 views 10 replies

Need expert advice on the following:

My company facilitates work for client and charges direct cost and project management cost to client by submitting separate invoices. As direct cost is cost incur during execution of project, selected vendor charge service tax on project execution (Bill  amount + service charge and VAT) so while invoicing for direct and project management to client, we are adding service tax only to project management cost. We do not have any intent to get any income for direct cost.  

Is this acceptable?

Thanks for assistance.

Upendra
 

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Replies (10)

in my view direct cost is also chargable to service tax,it cant be claimed as a reimbursement exp

wait for others suggetion

Agree with Sanjay, Service tax needs to charged for reimbursement of expenes also

Highly confused regarding double taxation.

 

why u termed as double taxation,couldnt get the logic

I am a facilitator and got work done for my client through third party vendor. Vendor has submitted invoice with applicable tax. I do not have any income from this work and while getting reimbursement, if I will add applicable tax then it will be double to my client. Hope you will understand and guide for the needful.

if u have a subcontractor who charge u service tax,then it becomes ur income credit & u hav to pay to the dept only output vat-input vat,so no double taxation 

sir,

 my cleint constructed a function hall with co ownership, the land documents are both in the names of husband and wife now the function hall construction is finished in this connection we are applying for service tax registration but in which name we have to apply for ST registration. I went to CBEC office there is no clarity answer in this matter please help me how to apply

u should apply as a partnership or huf

but they are senior citizens, is it possible to apply any one of name

 

their may be litigation in future abt the ownership which the dept may be sought so its better to go for partnership(for short period)


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