Applicability from when service tax on reimbursement of expenses

[Guest]

Dear Sir,

As per budget 2015-16, service tax is also calculated on the reimbursement of expenses (except pure agent), but I want to know that from when it is going to applicable?

Whether it is going to applicable from 1-4-2015 or it is going to applicable from the date notified by Central Government, by way of notification in official gadget, after enactment of finance bill, 2015.

[PAWAN KUMAR]

Dear Sir,

The same shall be applicable from the date of enactment of the Finance Bill 2015 as per the letter of Joint Secretary (Tax Research Unit), Govt. of India.

AI Summary

Service tax on reimbursement of expenses applies from enactment of the Finance Bill, per tax administration guidance. Service tax liability on reimbursement of expenses, excluding amounts treated as pure agent, was extended by the 2015-16 budget and is operative from the date of enactment of the Finance Bill, 2015, according to administrative guidance from the tax research unit.