The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reimbursable expenses are not includible in the taxable value of the service in terms of Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006.
The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has relied on the decision of the Delhi High Court in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. versus Union of India, in which it was held that reimbursements of amounts it received cannot be charged to service tax.
Source a2ztaxcorp
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