SERVICE TAX ON SEPERATE INOVICE REAISED FOR REAL REIMBURSEMENT OF EXPENDITURE

[abbas mukhi]

SIR,

WE ARE ON SOME OCCASIONS INCURRING EXPENDITURE ON BEHALF OF OUR CLIENT, LIKE BOOKING OF ROOMS IN HOTELS, BOOKING TAXI.

AFTER THAT WE ARE CLAIMING ACTUAL EXPENDITURE INCURRED BY US WITHOUT ANY PROFIT WITH ELEMENT THROUGH SEPARATE INVOICE RAISED (WITH SUPPORTING OF ACTUAL EXPENDITURE)

I WANT TO WHETHER SERVICE TAX IS APPLICABLE CONSIDERING THE RULES AND PROVISIONS OF THE SERVICE TAX ACT ON SUCH INVOICES.

THANKS....

AI Summary

Reimbursable expenditure inclusion may make reimbursements part of taxable consideration unless documented actual recharges exempt.
Recovery of expenditures incurred on a client's behalf may be treated as part of the taxable consideration when incurred to enable provision of a taxable service; valuation guidance and illustrations treat travel, hotel and similar costs procured on the provider's account as includible in the gross amount charged. Legislative amendment broadened the definition of consideration to include reimbursable expenditure charged in the course of providing a taxable service subject to exceptions, while genuine pass through reimbursements separately invoiced and supported by bills are factually distinct and may fall outside taxable value.