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TaxTMI 
Travelling expenses incurred outside India by on duty employee whether taxable?
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....ravelling expenses incurred outside India by on duty employee whether taxable?<br> Query (Issue) Started By: - Yatin Bhopi Dated:- 29-8-2016 Last Reply Date:- 30-8-2016 Service Tax<br>Got 9 Replies<br>Service Tax<br>Dear experts We are MNC and our employees, directors, marketing persons regularly visiting abroad for official work (customer meet \ trainings \meetings with superiors). They spends o....
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....n car hire, hotel accommodations, air travel. They pay these expenses from credit cards provided by our company or advances taken from company in cash. Whether service tax is payable under reverse charge on such expenses incurred by employee abroad? Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 65 B (44) of finance Act, 1994 "service" means any activity carr....
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....ied out by a person for another for consideration, and includes a declared service. According to Section 66B of the Finance Act, 1994 there shall be levied a tax (hereinafter referred to as the service tax) at the rate of fourteen per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person....
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.... to another. In your case since the expenditure towards car hire, hotel accommodations, air travel are all taking place in a foreign country which is not taxable territory under Finance Act, 1994 you are not required to pay service tax on RCM basis. Service tax is payable on RCM basis only when the service is imported into India. This is my view. Reply By KASTURI SETHI: The Reply: Sh.Yatin Bhopi....
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.... Ji, I am also of the same views as expressed by Sh.Rajagopalan Ranganathan, an expert. Reply By Ganeshan Kalyani: The Reply: Sir, I agree with both the experts above. As a layman my view is that it is a pure reimbursement. Also company has not availed those services directly. It is the employee who enjoyed those facilities and paid for that. Thus there is no service availed by company and the....
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....refore no service tax. Thanks. Reply By CS SANJAY MALHOTRA: The Reply: Dear Mr. Yatin, This is in addition to my friends views. Services rendered by Employee to Employer during the course of employment is not taxable as is not covered under the definition of service under Section 65(b)(44). Reply By Ganeshan Kalyani: The Reply: Sir, my view as above is as a layman view. Legal answer is given....
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.... by both the experts . Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, Your views are entirely in letter and spirit of Service Tax law. Only style of expression is different. Reply By Ganeshan Kalyani: The Reply: Thank you Sir. Reply By Yatin Bhopi: The Reply: Thanks a lot for clearing the concept Reply By Ganeshan Kalyani: The Reply: Welcome Sir. Thanks.<br> Discuss....
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