TaxTMI 
TaxTMI 
Supervision Charges receivable from customer for 1 days rate Rs 2500/- for 1days. Total supervision charges RS 25000/- for 10 days receivable from customer & Travelling exps Rs 1500/-. (1) Supervision charges, inspection charges covered under Service tax Act? (2) If covered, under which catagory? (3) What about Travelling exps? service tax applicable or not?
Service tax applicability - supervision charges
14 Jun 2009 
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Supervision charges taxability depends on service character; reimbursements and travel expenses form part of gross value and may be taxable.
Taxability of supervision, inspection and related charges depends on the substantive nature of the services. Third party supervision and associated travel reimbursements must be included in the gross value when the underlying service is taxable. Deploying an employee or labeling the supply as deputation can alter the character of the supply and may itself be taxable; nomenclature changes do not affect the substantive tax analysis. (AI Summary)
Taxability of supervision, inspection and related charges depends on the substantive nature of the services. Third party supervision and associated travel reimbursements must be included in the gross value when the underlying service is taxable. Deploying an employee or labeling the supply as deputation can alter the character of the supply and may itself be taxable; nomenclature changes do not affect the substantive tax analysis. (AI Summary)