Audit EA 2000

[anand shah]

Dear Team,

We are service provider having Pvt Ltd. Company and providing House-keeping , Manpower (Skilled /Unskilled) Services to Corporate Property and Residence.

I need some advice from your expertise that we are collecting a part of Reimbursement payment through Debit Note from our client like P.F & E.s.i.c Contribution , Consumable Materials, Travelling / transportation & Employees Uniform charges. We are not collecting Service tax on the above mentioned Expenses as well as No Agency charges etc.

In this regards we need to know whether the above is Included in Taxable services or not ?

Please Advice and provide your suggestions .

AI Summary

Service Provider's Reimbursable Expenses Subject to Tax Under Section 67 of Finance Act, 1994; Supreme Court Confirms A service provider company inquired about the taxability of reimbursable expenses such as P.F & E.S.I.C contributions, consumables, travel, and uniform charges, collected via debit notes but not subjected to service tax. Responses clarified that under Section 67 of the Finance Act, 1994, such expenses should be included in the taxable value and are subject to service tax. The Supreme Court has upheld this interpretation. Furthermore, under GST, these amounts are also included in the taxable value. Notifications specify that 100% service tax on manpower supply is payable by the service receiver under the reverse charge mechanism.