Service tax on out of pocket expenses, Service Tax

[SUNIL BHANSALI]

WHETHER OUT OF POCKET EXPENSES RECOVERED ON ACTUAL BASIS FROM CLIENT IS LIABLE TO SERVICE TAX OR NOT. SECONDLY,IS THERE ANY AMENDMENT/CIRCLAR/NOTIFICATION HAS BEEN ISSUED IN THIS REGARD.

Posts / Replies

[V Ramanujam]

Reimbursements of any expenditure/costs incurred in the course of providing the service is to be included in the cost of service and liable for tax. Only exception is if the expenditure is incurred as a 'pure agent'. You may refer Service tax (Determination of Value) Rules, 2006 for full details.

[rajesh SINGH]

the pocket exp will not be liable for service tax and it should be charged separately