TaxTMI 
TaxTMI 
XYZ (Client from Delhi) had entered in to a Contract with PQR (a chartered accountant from Mumbai) to carry out audit of their records. As per the contract, the amount payable by XYZ to PQR towards professional fees will be ₹ 100000/- + the amount to be paid towards hotel stay, air fare etc. which will be directly paid by XYZ to hotel and the airlines. PQR is required to pay GST on ₹ 100000/- only or ₹ 100000/- + amount paid by XYZ towards hotel stay, air fare etc. directly to the hotel and the airlines?
Value for charging GST
19 Feb 2019 
4 Replies 
1453 Views Asked by
Taxable value inclusion: reimbursements and incidental expenses paid by a recipient may increase the supplier's GST liability.
GST valuation requires including in transaction value incidental expenses charged by the supplier and any amount the supplier is liable to pay that has been incurred by the recipient; if the recipient directly pays travel or accommodation that the supplier is liable for or that constitutes supplier consideration, those reimbursements must be included in the supplier's taxable value, whereas expressly agreed direct provision by the recipient need not be added. (AI Summary)
GST valuation requires including in transaction value incidental expenses charged by the supplier and any amount the supplier is liable to pay that has been incurred by the recipient; if the recipient directly pays travel or accommodation that the supplier is liable for or that constitutes supplier consideration, those reimbursements must be included in the supplier's taxable value, whereas expressly agreed direct provision by the recipient need not be added. (AI Summary)