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APPLICABILITY OF SERVICE TAX ON OUT OF POCKET EXPENSES, Service Tax |
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APPLICABILITY OF SERVICE TAX ON OUT OF POCKET EXPENSES |
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ONE OF OUR SERVICE PROVIDER IS A CONSULTANT. HE HAS BOOKED AIR TICKETS ON HIS OWN FOR OUR WORK. HE HAS RAISED A SEPARATE BILL ONLY FOR REIMBURSEMENT OF TICKETS WITH 12.36 SERVICE TAX. WHETHER WE SHOULD PAY SERVICE TAX AFTER CONSIDERING THE RECENT HONOURABLE JUDGEMENT : "INTERCONTINENTAL CONSULTANTS & TECHNOCRATS PVT. LTD. VS. UNION OF INDIA (2012 (12) TMI 150 - DELHI HIGH COURT) Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
Though, this judgment is in favour of assessees but revenue department will continue to raise objection on out of pocket expenses.
WHETHER WE SHOULD PAY SERVICE TAX TO THE CONSULTANT.
Please check the facts of your matter, if such facts are similar to aforesaid judgment, then you should not pay the Service Tax on re-imbursement of expenses. Further, if payment of Service tax is revenue neutral for you then you can pay it off. All is dependent on your Risk Appetite. Page: 1 Old Query - New Comments are closed. |
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