Urgent urgent - ST Debit note/invoice

Dear Mr. Hegde,

In single invoice you can have two columns one is "Taxable" & another is "Non - taxable" .

Taxable portion is the consideration on which CHA has Markup and so liable for ST.

On Non - Taxable column is the consideration which is collected as "Pure reimbursement" hence not liable for ST.

Also suggested to comply with the conditions specified in Rule 5 of Service Tax (Determination of Value) Rules, 2006.

Regards

Venkat

Originally posted by : Venkat
	Dear Mr. Hegde, In single invoice you can have two columns one is "Taxable" & another is "Non - taxable" . Taxable portion is the consideration on which CHA has Markup and so liable for ST. On Non - Taxable column is the consideration which is collected as "Pure reimbursement" hence not liable for ST. Also suggested to comply with the conditions specified in Rule 5 of Service Tax (Determination of Value) Rules, 2006. Regards Venkat

Dear Venkat,

We are not raising Invoice for the reimbursement expenses. Instead we are issuing debit note for those expenses. We forward our debit notes attaching the bills raised in favour of us by the service provider for such services.

If Markup is there on those debit notes then the same is liable for service tax .

If no markup but only pure reimbursement then, same can keep out of levy of service tax.

Saying that your procuring services from vendor to provide service to your customer . However for this you have to ensure that there is an agreement and intimate fact to dept. to ensure no litigation in future.

Venkat