Expenditure

[MITSUI PRIME ADVANCED]

 

Dear Sir

 

Please provide your valuable suggestion in the case of RCM ( Reverse Charge Mechanism) We have properly deposit service tax under RCM service received from outside of India territory  related to Engineering services.

one person was come  from japan to India we have arrange air ticket and hotel for around 75 day's, Service tax department  issue a notice under demand of service tax on  expenditure born by company by way of hotel air, and refreshment expenses of one person from japan.

So in this case Service tax applicable  on Expenditure ( air, hotel , refreshment ) born by company ,

 

please provide your advice urgently

Regards

Arjun Sachdeva

 

AI Summary

Company Liable for Service Tax Under RCM on Airfare, Hotel, and Refreshment Expenses for Foreign Visitor's Engineering Services A company inquired about the applicability of service tax under the Reverse Charge Mechanism (RCM) for expenses incurred on air tickets, hotel, and refreshments for a Japanese individual visiting India for engineering services. The service tax department issued a notice demanding tax on these expenditures. Two respondents confirmed that the company is required to pay service tax under RCM on the total expenses incurred.