Service Tax Salary reimbursement to Outsourcing Expenses

Hi,

I am working in a private limited company where we have given some data entry work to some outsiders. They are submitting bills as below:

Salary Reimbursement           Rs.100000

Service Charges                       Rs.10000

Service Tax ( @ 10.3%)              Rs.11330

 

My query was whether service tax to be charged on full amount i.e,1,10,000 or service charges amount only i.e, Rs.10,000

Please suggest me on above matter

Replies (1)

Dear Bhanuprasad,

As the data entry work is outsourced, irrespective of the way the billing is done (calling it as Sal Re-imb), the full amount will attract service tax. Hence the ST on 1,10,000 is correct.

Thanks,

Ganesh

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details