REVERSE CHARGE ON REIMBURSEMENT OF TAXI HIRE CHARGES

[Ashish Chhawchharia]

Dear All,

Please suggest whether service tax is to be deposited under reverse charge mechanism on reimbursement of taxi hire charges to employees on out duty.

[YAGAY andSUN]

Not required, if your employees have hired, Radio Taxi, Meter Taxi or Three wheeler(Auto).

[GANAPATHY RAJENDRAN]

It is reimbursement only . The emplloyer does  not pay  any taxi  bill to Travel agent / tour operator . There is no bill in the name of the company . Hence , no  need to pay service tax on such reimbursement of hire charges

[Guest]

In case there is contract by thrvice providre company with the taxi service provider then there will be reverse charge applicable.If it is a ase of purely reimbursement of taxi hire charges reimbursed to an employee,then reverse charge is not involved

[Ashwani Rustagi]

No service on reverse charge mechanism would be applicable on reimbursement of expenses to the employees.

[Joginder Pal]

I agree with it.