Service Tax on reverse charge method - reg.

[vinay wakde]

The service provided by an individual Advocate &  the  service receipient is company then Service Tax is required to be paid by the service receipient  under reverse charge method w.e.f. 01.07.2012.  My query is whether the company has to pay service tax to the extent of fees paid to the advocate or also on other expenses re-imbursed by the company (such as trivelling, fooding expenses etc.).  

Regards,

VINAY

AI Summary

Reverse charge service tax: company liable for advocate fees and potentially for reimbursed expenses unless billed separately.
Reverse charge applies to a company receiving services from an individual advocate; the contested issue is whether the taxable base includes only professional fees or also reimbursed out of pocket expenses. Two replies treat the taxable value as the gross amount including travel, food and reimbursements, while one reply limits tax to the fee and advises separate bills for fees and reimbursements.