Service Tax on reverse charge method - reg., Service Tax

[vinay wakde]

The service provided by an individual Advocate &  the  service receipient is company then Service Tax is required to be paid by the service receipient  under reverse charge method w.e.f. 01.07.2012.  My query is whether the company has to pay service tax to the extent of fees paid to the advocate or also on other expenses re-imbursed by the company (such as trivelling, fooding expenses etc.).  

Regards,

VINAY

Posts / Replies

[Pradeep Khatri]

It gona to be paid on the gross amount including travelling, fooding and outofpocket expenses.

[Harsh Jindal]

Everything will be included in the gross amount charged for service tax i.e. fees paid to advocate, travelling expense, fooding expense etc.

[SANJIV KOTHARI]

Service tax is payable only on fee part. There is no service tax on reimbursement part. It is better that advocate must submit two bill one for fee and other out of pocket expenses.