TMI Blogwhether service tax is applicable on esic reimbursmentX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, Kindly confirm whether service tax is applicable on esic reimbursement from company in separate bill. Regards, Pandit Bhagat - Reply By Ganeshan Kalyani - The Reply = If the claim is supported by documentary evidence then in my view service tax is not applicable. - Reply By Rajagopalan Ranganathan - The Reply = Sir, If the esic reimbursement is in respect of security guards, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or man power supplied by a contractor and if the gross amount charged by the contractor includes salary of guards, employer's ESIC, PF contribution towards labour fund, bonus, leave, uniform etc., then the service tax is payable on the gross amount charged by the contractor. If the same is in respect of employees employed by you then it is paid out of employer-employee relationship and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same is not liable to service tax. - Reply By YAGAY AND SUN - The Reply = The principal of pure agent shall applicable in this matter as this is being payable to ESIC on behalf of the company by the contractor i.e. (pure agent). We endorse the view of Ganesan Kalyani. - Reply By KASTURI SETHI - The Reply = I support the views of Sh.Ganeshan Kalyani, Sir and M/s.YAGAY AND SUN, Sirs. - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Sonali Sharma - The Reply = Element of service is missing that mean no service has been provided in this transaction and secondly it is not a declared service, so no service tax is applicable. - Reply By KASTURI SETHI - The Reply = Here is not the issue of 'Declared Service . There are so many other services which are not declared ones but these are services. Here ST is not applicable, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eimbursement in itself is no service. Declared Services mean no dispute about the nature of service having legal validity. For example; 'Renting of Immovable Property' was challenged whether it is service or not. Now dust settled. - Reply By Sonali Sharma - The Reply = For service tax purpose, transaction has to be seen on two accounts and if any one exists then service tax i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s leviable (ofcourse if it is not exempted otherwise by any notification) 1. Whether element of any service exists in the transaction 2. If not, then whether transaction is a declared service So concept of declared service is required to be seen before squarely ruling out applicability of service tax. ESI reimbursement are not covered under any of above 2 points, thus no service tax is require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be paid. - Reply By KASTURI SETHI - The Reply = There are basic three parameters for the purpose of levy of ST and these are :- 1. There service provider of Taxable Service. 2.There must be Service Receiver. 3.There must be consideration . If one of the elements is missing, the chain is broken. These are very much basis ST laws. - whether service tax is applicable on e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sic reimbursment - Query Started By: - Pandit Bhagat Dated:- 30-1-2017 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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