TaxTMI 
TaxTMI 
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.
REVERSE CHARGE ON REIMBURSEMENT OF TAXI HIRE CHARGES
28 Aug 2012 
5 Replies 
16636 Views Asked by
Reverse charge: generally not applicable to employee-reimbursed taxi hire, but applies if the company contracts with the taxi provider.
Reverse charge is generally not triggered when an employer reimburses an employee for taxi hire incurred on out-duty where the employee directly hires a Radio Taxi, Meter Taxi or three-wheeler and the invoice is not in the company's name. If the employer or its contractor has a contract with the taxi provider or receives the invoice, the supply is treated as to the employer and reverse charge may apply. (AI Summary)
Reverse charge is generally not triggered when an employer reimburses an employee for taxi hire incurred on out-duty where the employee directly hires a Radio Taxi, Meter Taxi or three-wheeler and the invoice is not in the company's name. If the employer or its contractor has a contract with the taxi provider or receives the invoice, the supply is treated as to the employer and reverse charge may apply. (AI Summary)