Reimbursement Income Tax Rules
· No transaction is allowed of more than 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.
· Never accept a bill on a latter head.
· The bill must have a bill number.
· Always hire audio visual 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 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/Restaurants is less than 10 lacs per annum; Hotel/Restaurant is not air-conditioned; 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 charged
· 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 (........name of IMA branch ).