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Classification of Service

(Querist) 01 June 2009 This query is : Resolved 
Hi All

My query is that:

A is picking up fly ash from B companies premises. B is not selling ash to A but are reimbursed Rs.50 per metric tonne as administrative charges.

Is B company liable to pay service tax for such reimbursement of Rs50. If yes, please classify the service.

Thanks

Ajay Sharma
Report Abuse
B.B.R.Goud. (Expert) 01 June 2009
No.
B company is not liable to pay service tax for such reimbursement of Rs 50, as far as i know.

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