Hi All
Company A has entered into an agreement with Company B for providing consulting services. While provding such services Company A has been recipeint of travel servcices( Tour & travel package) from Company C, which was arranged by Co B.
Invoice was raised in the name of Co A but paid by Co B.
Invoice
Value of services - 5039
service tax @ 12.36% (less 60%abatement) - 249
Total value - 5288
When Co B has rasied the debit note for the reimbursement of the above amount.
They have charges as
Car hire charges from Co C - RS 5288/-
Service tax @ 12.36% - Rs 654
Total amount - Rs 5942/-
IS Co B correct in charging service tax.
Please reply. Also please let me know relevant sections of your reply
Thank you
CAclubindia
