Reimbursement of expenses liable to service tax or not

Hi

I want to know whether reimbursement of expenses which are paid by the service provider while providing the service( eg. telephone expenses or travelling expenses) are liable to service tax or not?

But as per Delhi High Court judgement in the case Inter continental Consultants and Technocrafts Pvt Ltd vs Union of India  reimbursement of expenses are not liable to service tax.

So what is current implication whether service tax is levied or not in the following case?

Thanks in advance. Suggestions awaited....

 

 

Replies (1)

Its a controversial issue as far as Delhi HC's judgment in favour of assessee, even there are some judgements which are contracditory to this.

if you are charging the reiburment expences in your invoices alongwith the service value you need to pay tax on gross amount of invoice.

if you are charging seprately, let inform the department about same alongwith the copy of Delhi HC judgement copy to safeguard you self from any penal action in future.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details