Service tax on direct payment to postal department
Mahendra Mhatre
(Querist) 27 September 2013
This query is : Resolved
If a client company of Registrar & Transfer Agents makes direct payment of Postage to Postal Authority, whether service tax is exempted?
As a practice Registrars are providing the services and ask the reimbursement of Postages by charging Service Tax.
To avoid the burden the clients are taking this route. Is this OK as per Service Tax provisions?