Service tax and FBT

TDS has to be deducted on gross amount plus service tax, though i may not be able to prove it with relevant evidence.
It is considered to be an unwritten code and as a matter of practice, everyone deduct tax on amount inclusive of service tax as a safety measure and my advice to you would be the same.

The answer for your second question is YES. FBT will be applicable, even if the expenses incurred by a particular person is reimbursed to him at a later stage.

And as far as the person who reimburses is concerned, he will fall outside the scope of FBT in respect of such expenses.

HI If you read to Income Tax Act it clearly mntions that TDS is liable on total amount includung reimbursemnets and other amounts by whateever name called.So TDS is liabkle on ST also and as per my experience everyone doing the same. As per my opinion GBT is not liable on expenses that is reimburseable cos FBT will be paid on it by actual beraer of expenses. So you should not pay FBT on it. And if you see from accounts angel, one side you will expenses suppose rs 100 of conveyance and other side you will get rs 100 so youe expenses account will remain zero. So if you have not expensed, then on which amount you will paf FBT. Let me know for more. Thanks Vijay

TDSb is on full value of invoice it may include ser.tax.As far FBT is concerned its pre decided on % basis.follow that

TDS is to be ded.on gross amount FBT is to be deposited by the person who first incurr the exp.i.e If a company incurs expenditure on travelling, hotel etc. wholly and exclusively for executing an assignment for its client and the client reimburses the company for such 'out of pocket' expenses, whether the company would be liable for FBT in respect of such 'out of pocket' expenses? Since the expenditure on travelling, hotel etc is incurred by the company and not by the client, the company is liable to FBT in respect of such expenditure. However, the client will not be liable to FBT in respect of payment for such expenditure. This fbt amount u claim from client alongwith exp.cost , as you'll deposit the same on their behalf.

Please let me know if FBT is paid on only expense amount or on both expense plus tax associated to it. For ex- If i have availed any benefit of Rs X on which service tax of Rs Y is also paid. then will the company have to pay FBT on X+Y  ???

Also pls throw some light on the issue if there is some change if company is availing Service tax input credit

Can we reverse the entry of expenses in same year ?