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S tax on reimbursements

This query is : Resolved 

14 September 2014 Is service tax applicable on reimbursements made to vendors for companies spends ?

14 September 2014 Service Tax not Applicable on Reimbursement of Expenses.

Citation: Intercontinental Consultants and Technocrats Pvt. Ltd. Vs. Union of India & ANR (2012-TIOL-966-HC-DEL-ST)


17 September 2014 Is the status same as this judgement is of Dec-12 and I believe its appealed in Supreme court?

17 September 2014 Status remains same to the best of my Knowledge.

21 November 2015 Now Service Tax has to be charged on reimbursement of expenses also.

IN the Finance Bill 2015, the Explanation to Section 67 - Clause (a) has been substituted. As per the new amendment, all reimbursement expenses incurred by the service provider, have to be included in the consideration.

The amendment is as below:

'(a) "Consideration” includes–

(i) any amount that is payable for the taxable services provided or to be provided;

(ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed;

(iii) ............................................'


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