Service tax

Customer has just reimbursed the charges paid by you.

Actual transaction is between you and Transporter. Service tax payment liability arises on you over the amount charged by transporter.

Thanks for your valuable reply, but whatever they reimburse it was more than we made actual payment, so where we adjust this excess amount, and second thing is @ what percentage I have to pay service tax.

Under RCM you are liable to pay 4.5% including cesses, with abatement.

What's about received excess reimbursement ?

Dear, actually its what you have received against reimbursement of transportation charges.

So, any excess money is to be repaid/credited to the party acc.

There is no guidance or rule for adjustment of such excess advace amount.

At last, any unadjusted such amount is credited to profit & loss Acc.