TaxTMI 
TaxTMI 
Reimbursement of Traveling and visit
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....eimbursement of Traveling and visit<br> Query (Issue) Started By: - Ashok Puri Dated:- 11-9-2018 Last Reply Date:- 12-9-2018 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>A manufacturer supplies equipment to a buyer. Due to incorrect installation by buyer equipment malfunctions. Buyer contacts seller to come urgently to resolve issue and agrees to bear traveling and visit expenses. The s....
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....upplier travels by air and taxi to reach destination urgently and return. Buyer reimburses traveling expenses incurred to seller. Seller does claim ITC on traveling expenses incurred. Is GST applicable on reimbursement received for traveling and visit. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: In my view it is applicable. Reply By Ashok Puri: The Reply: So if seller sends a third party to....
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.... attend to the problem of buyer and pays the third party for visit and travel and gets reimbursement from buyer does GST apply. In this case he is just a agent in the transaction. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: In case of a pure agent GST is not applicable. It is up to decide the nature of the agent. Reply By Pranav Shah: The Reply: I am of the view that seller is claiming ITC ....
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....on travel expenses incurred by him then he has to pay output GST on income/re-imbursement received by him. However alternatively if accounting is done in a manner where all the expenses incurred is shown as being done on behalf of buyer and exact amount is re-imbursed then GST will not be applicable as a pure agent. But no input GST credit be claimed by seller , if input credit is to be claimed i....
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....t can be only be done by buyer. Reply By Ashok Puri: The Reply: Sorry there was a typing mistake. The seller does not claim ITC on GST paid for travelling expenses. Further the third party should raise invoice on buyer or seller as buyer paid for the Traveling and visit charges and received reimbursement from buyer. Please clarify<br> Discussion Forum - Knowledge Sharing ....