If out of Pocket expenses are included in invoice then it is Liable to Service Tax,
However if the invoices of expenses are produce to the compay directly & Payment is made for the same then no need to charge Service Tax
agree wid CA Momin.. if there is a seprate bill for reimbursement then no need for service tax & to deduct TDS, but if the expenses are included in the common bill with the professional fees then service tax is to be charged & TDS on whole bill amt will be deducted..
I have perused all your valuable responses. It is important to comply with prescribed Rule 5(2) of Service Tax (Determination of value ) Rules 2006 as amended till date. Only if the provider acts as a pure agent of receiver, then reimbursement of expenses is not liable to service tax levy.
Regards,
CAclubindia
