https://www.taxtmi.com/forum/issue?id=108317 Issue whether service tax applies to handling and maintenance services at a manufacturer-run retail outlet when a contractor incurs expenses and is reimbursed by the principal. The provider of the taxable service is primarily liable to pay service tax; reimbursements can form part of consideration depending on contractual treatment. If the recipient pays service tax, it may claim input service credit subject to statutory conditions. The departmental demand against the contractor for tax on full payments including reimbursements highlights assessment, interest and penalty risks and the need for clear invoicing and credit compliance. en-us Thu, 26 Mar 2015 17:26:45 +0530 Thu, 23 Jan 2025 15:56:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=108317 Issue whether service tax applies to handling and maintenance services at a manufacturer-run retail outlet when a contractor incurs expenses and is reimbursed by the principal. The provider of the taxable service is primarily liable to pay service tax; reimbursements can form part of consideration depending on contractual treatment. If the recipient pays service tax, it may claim input service credit subject to statutory conditions. The departmental demand against the contractor for tax on full payments including reimbursements highlights assessment, interest and penalty risks and the need for clear invoicing and credit compliance. Discussion-Forum Service Tax Thu, 26 Mar 2015 17:26:45 +0530 https://www.taxtmi.com/forum/issue?id=108317