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Service tax chargeability
Hi,
Want to clarify is service tax is applicable on amount collected as reimbursement of expenses incurred by indian company for marketing of product of foreign company in india.? apart from this reimbursement indian company is charging for supervision services provided to foreign company. Will these services and reimbursement will fall under export of services ??
Replies (2)
It maybe liable if the reimbursements are related to the service. This may not be falling into pure agent exclusion in Rule 5(2).
Taxability of reimbursements would depend on the Taxability of services in relation to which reimbursements are claimed I.e. if service is taxable, reimbursements in relation to these services are taxable in terms of sec 67.
Coming to Taxability of services, if services are for arranging supply of goods, service is taxable so are the reimbursements...
If reimbursements are in relation to supervision services ( which seem to fall under rule3 of pops rules) then both supervision charges as well as reimbursements, both are not taxable..
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