Reimbursement Income Tax Rules

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  • No transaction is allowed of more than Rs. 20,000 in cash in one day with one vendor.
  • Payments of more than Rs.2,000/- should be made in Cheque as far as possible.
  • Put a revenue stamp on every cash receipt.
  • If a vendor is charging service tax, the bill must carry service tax number
  • If the vendor is charging VAT or sales tax, TIN number should be on the bill.
  • Always hire audiovisual equipment and run it yourself. If you hire a person for operating the system, service tax will be applicable.
  • If you hire a car and run it yourself, service tax is not applicable. But if you hire a car with the driver, service tax is applicable.
  • In Hotel and Restaurants, Service Tax is not applicable if the total turnover of the hotel/restaurant is less than 10 lakh per annum, if the Hotel/Restaurant is not air-conditioned or if the room rent in the hotel is less than 1000 Rs per day per room.
  • All Bills should contain the word “Service Tax not applicable” if it is not charge
  • Best way to take a bill is “inclusive of all applicable taxes”
  • If the vendor has only given a bill than a stamp of ‘cash paid” should be there on the bill or a separate receipt should be procured. Remember both receipt and bill are needed.
  • In TB Project, Every bill should be in the name of IMA-GFATM-RNTCP-PPM Project (…… of IMA branch).