CA Sansaar
- All Categories
- Income Tax (1616)
- Students (768)
- Service Tax (497)
- Corporate Law (462)
- Audit (393)
- Accounts (336)
- VAT (277)
- GST (136)
- Finance (110)
- Excise (106)
- Banking (46)
- FEMA (40)
- Custom (29)
- Shares & Stock (18)
- IFRS (17)
- Income Tax Software (4)
- Cost Inflation Index (1)
Recent
- What Documents Are Required for ITR Filing?
- How to File Income Tax Return Online?
- Managing personal finance
- Managing personal finance
- How can beginners start managing their personal finances effectively?
- How can beginners start managing their personal finances effectively?
- How can beginners start managing their personal finances effectively?
- What is Union Budget 2026-27?
- Test
- 26QB Challan
- Cash amount deposit in bank account as on dt:31-03-24
- branch statutory Audit
- Tax Liability on payment of Gratuity
- Using the work orders of another entity
- Capitalisation of Assets in case of housing society
- GSTR 9 ITC Reversal
- Reissue Refund of Closed Partnership Firm
- section 43B(h)
- TCS os sale of Fly Ash
- Limit of cash on hand sec 44ad person
- STATUTORY AUDIT
- Long term capital gain
- Un secured loans hug amount sec 68 provision applicable
- Resume Upload
- Cash balance increased options
- FOREX FFMC GSTR-1
- missing turnover show in next quater or drc-03 pay correct procedure
- Banking
- Gift transactions from relatives allowed different dates
- TALLY EXCEL IMPORT
- Income Tax
- Empanelment ewnewal fees
- Tax Audit in case of Pvt. Ltd. Company
- ITC from ISD wrongly reflecting in System generated annual GSTR 3B
- Pf and esi subscription amounts late payments claim eligible and provision compulsory
- GST Applicability
- Loans credit and debit adjustment entry allowed in it act
- Tax audit or itr-3 filed f.y.22-23
- Gst returns nil filed cash deposit in bank account
- Cash limit question
Q. > Please Help: reiumbursement of exoenses with service tax
Suppose we have incurred Rs 100/- on Hotel Bill / Payment to Travel Agency . Further you Know the Train ticked AC includes also service tax element . we incurred service tax @ 5 % , than our out of pocket expenses is Rs 105 . The Expenditure is reiumbursable by client we raised on bill of Rs 117.97 ( 105+12.36 % service Tax ), the client refuse to pay service tax my query is 1) Rs 5/- is our service tax input or not ii) we have to raised bill for Rs 112.36 or 117.97 iii) if client is paid 117.97 it means they paid rs 17.97 as service tax means service tax on service tax also please explain with example , supporting provision , supporting evidences
answered Oct 07, 2013 by shankygarg , Karnal
AS PER NEW SERVICE TAX RULES, SERVICE TAX SHOULD BE CHARGED ON "OUT OF POCKET EXPENSES".SO, SERVICE TAX WILL BE SURELY CHARGED.
1) YES, RS.5 IS YOUR INPUT TAX.
2) YOU SHOULD RAISE BILL FOR RS. 117.97.
3) IF YOUR CLIENT PAYS RS. 117.97, IT DOES NOT MEAN THAT THEY PAID RS.17.97 AS SERVICE TAX. SERVICE TAX OF RS.5, paid by you, IS PART OF THEIR COST FOR THE SERVICE.
answered Oct 07, 2013 by shankygarg , Karnal
AS PER NEW SERVICE TAX RULES, SERVICE TAX SHOULD BE CHARGED ON "OUT OF POCKET EXPENSES".SO, SERVICE TAX WILL BE SURELY CHARGED.
1) YES, RS.5 IS YOUR INPUT TAX.
2) YOU SHOULD RAISE BILL FOR RS. 117.97.
3) IF YOUR CLIENT PAYS RS. 117.97, IT DOES NOT MEAN THAT THEY PAID RS.17.97 AS SERVICE TAX. SERVICE TAX OF RS.5, paid by you, IS PART OF THEIR COST FOR THE SERVICE.
Experts Panelist
Comments
Aseem Rana
09-Oct-2013 , 12:31:59 pmAlthough Rule 5(1) of Service Tax rules says that: Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided. But there are many rulings which says that service tax is not chargeable on expenses reimbursed. For this, contractual relationship has to been seen between service provider and receiver, if the responsibility for payment of travelling expenses lies with receiver, than no service tax is leviable on reimbursement but if travelling expenses are liability of Service provider and incurred incidental to provision of service than service tax is chargeable and in your case it is chargeable on Rs.100 as you are taking Rs.5 as Input credit.
PRAKASH KUMAR SINGH
09-Oct-2013 , 11:18:32 pmYou should raise a bill of Rs 117.97 & Rs 5 is your Service tax input.