service tax liabilities when expenses recovered by sister concern against wages & salaries of staff

service tax liabilities when expenses recovered by sister concern against wages & salaries of staff https://www.taxtmi.com/forum/issue?id=106799 Whether reimbursements of staff salary and wage expenses between related entities attract service tax depends on whether the payer and payee are distinct legal entities or units of the same entity. Pure cost sharing or pass through reimbursements without markup are ordinarily non taxable, while any added margin may be taxable and must be assessed under valuation rules. The inquiry emphasizes corporate form and functional indicia (incorporation, PAN usage, management unity, tendering and agreements) over mere separate registrations. en-us Thu, 15 May 2014 11:23:16 +0530 Thu, 23 Jan 2025 15:57:21 +0530 TaxTMI RSS Generator service tax liabilities when expenses recovered by sister concern against wages & salaries of staff https://www.taxtmi.com/forum/issue?id=106799 Whether reimbursements of staff salary and wage expenses between related entities attract service tax depends on whether the payer and payee are distinct legal entities or units of the same entity. Pure cost sharing or pass through reimbursements without markup are ordinarily non taxable, while any added margin may be taxable and must be assessed under valuation rules. The inquiry emphasizes corporate form and functional indicia (incorporation, PAN usage, management unity, tendering and agreements) over mere separate registrations. Discussion-Forum Service Tax Thu, 15 May 2014 11:23:16 +0530 https://www.taxtmi.com/forum/issue?id=106799