Service tax applicable on reimburse asset

Dear Experts,

We are a Logistic Group. We provide 3PL Logistic, CFA Service and Transportation Service to client.

We purchased Assets on behalf of our client in Last Month. Now we would Reimburse this amount by our client. So My query that  Is Service Tax applicable on this Invoice or Not ?

For above Query I clarify with Example.

1.     If Service Tax Applicable

           Assets Value                     :   35000

           Service Tax                        :     5075

           Total Reimbursed Value      :    40075

 

2. If Service Tax not Applicable :-

         Assets Value               :      35000

        Total Invoice Value         :      35000

 

kindly suggest which Example is correct.

Replies (2)

First of all i want to tell u that on Purely Reimbursement No service tax should be Levy.

so in ur case u can not charge the service tax on the Invoice as u have purchased on the behalf of the Cleint.

Hope u understood !

So ur Invoice Amount will be Rs. 35,000 .

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