watch_later 19/01/18

My client will charge a fixed amount as an reimbursement showing separately in in the bill. Do we need to apply gst on that amount 

1 Response | Latest response: 19/01/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 19/01/18

Yes, you need to charge GST on expense reimbursements unless expenses are incurred as a pure agent.

As per valuation provisions under GST, any expense incurred in providing a supply has to be included in value of supply.

You did not mention nature of expense, so I will understand that these are normal expenses such as travel, conveyance etc.

Now understand with an example what is not taxable.

As a chartered accountant if I pay some taxes on behalf of my client, and claim reimbursement, I do not have to charge GST on this as a I did it as a pure agent and did not earn any profit on this.


Sign up to discuss taxation, accounting and finance topics with experts from all over India.

Join Discussion