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No service tax to be levied on amount received as reimbursable expenses from clients :
Text Hundred India (P.) Ltd v. CST, Delhi- [2018] 94 taxmann.com 170 (New Delhi - CESTAT)
The assessee received the reimbursable expenses from the client on actual basis.The department held that such amount was includible in the gross value for the purpose of payment of service tax. The assessee filed an appeal before the Commissioner (Appeals) who allowed the appeal in favour of revenue. Again, it filed an appeal in the Tribunal.
The Tribunal held that the reimbursable expenses cannot be considered as amount charged 'for providing the taxable service'.
The assessee was entitled for receiving the actual expenses incurred by it. Therefore, such expenses could not be included in the gross value for the purpose of payment of service tax as such amount was not towards the consideration received for providing the taxable service. |
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