TaxTMI 
TaxTMI 
Dear sir,
How do we go with quoting of SAC of reimbursement of expenses bill
Quoting of SAC
23 Jan 2020 
2 Replies 
870 Views Asked by
Classification of reimbursement of expenses: follow the SAC/HSN of the principal supply, not a separate SAC.
Reimbursement of expenses is an expense and not a distinct service; there is no specific SAC for reimbursement. If reimbursed costs relate to a taxable supply of services, use the SAC of the principal service; if they relate to taxable goods, classify under the relevant Chapter/Heading/Sub heading (HSN) for those goods. The critical test is the nature of the associated supply of goods or service, and invoice coding should follow the classification of that principal supply. (AI Summary)
Reimbursement of expenses is an expense and not a distinct service; there is no specific SAC for reimbursement. If reimbursed costs relate to a taxable supply of services, use the SAC of the principal service; if they relate to taxable goods, classify under the relevant Chapter/Heading/Sub heading (HSN) for those goods. The critical test is the nature of the associated supply of goods or service, and invoice coding should follow the classification of that principal supply. (AI Summary)