Expense Reimbursement

reimbursment is never the part of neither fee nor salary. so. it will Dr. to respetive head like travling/telephone etc.

Reimbursement is the part of service , FEW CASES , but in above said  case no sevice tax applicable .

a) Reimbursement of expenses is a part of Auditors Remuneration as in it needs to be added to Audit Expenses

b) Reimbursement is leviable to Service Tax unless the expenditures are incurred as Pure Agent for Chartered Accountancy Services..

But Nicky sir, reimbursment is expenses born by employee on the behalf of employer and letter payment is made to employee

Here in the given case the payment is by the Auditee who is not the Employer so the relation that you are talking doesnot exist