29 Jan

VALUE ADDED TAX ON REIMBURSABLE EXPENSES (FACTS YOU NEED TO KNOW )-VOL2

Introduction

A reimbursable expense is incurred by an employee on behalf of an employer or a company on behalf of its client which is expected to be refunded to the employee or the company as the case may be. An example of this is a case of audit/tax service where a professional fee is agreed. Along with the agreed professional fee for the audit/tax service, other expenses like cost of stationery, transportation, telephone and hotel bills are incurred. These other expenses could be referred to as reimbursable expenses as stated in the service level agreement/letter of engagement. In this context, it is expected that a company or an individual is refunded after a reimbursable expense is incurred