https://www.taxtmi.com/forum/issue?id=109851 When an intermediary invoices an ultimate recipient at the exact amount charged by the service provider with no markup and as a reimbursement, the intermediary is a pure agent and the reverse charge mechanism makes the ultimate recipient liable for service tax. If the intermediary adds any additional consideration, the intermediary's supply becomes taxable and the intermediary must account for service tax. Classification as intermediary services or works-contract-related supply, contractual terms, invoice particulars, and valuation (pure labour vs abatement) determine the correct tax incidence and potential penalty exposure. en-us Tue, 09 Feb 2016 19:13:07 +0530 Thu, 23 Jan 2025 15:56:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=109851 When an intermediary invoices an ultimate recipient at the exact amount charged by the service provider with no markup and as a reimbursement, the intermediary is a pure agent and the reverse charge mechanism makes the ultimate recipient liable for service tax. If the intermediary adds any additional consideration, the intermediary's supply becomes taxable and the intermediary must account for service tax. Classification as intermediary services or works-contract-related supply, contractual terms, invoice particulars, and valuation (pure labour vs abatement) determine the correct tax incidence and potential penalty exposure. Discussion-Forum Service Tax Tue, 09 Feb 2016 19:13:07 +0530 https://www.taxtmi.com/forum/issue?id=109851