Service tax applicable on reimbursement amount

Following factors could be considered.

1. Place of provision in case of goods transportation services (other than mail or courier) would be the place of destination of goods. (Rule 10 of POPS). In case of exports place of provision would be outside taxable territory - No ST liability.

2. If the commission agent recovers actual cost incurred by him towards freight forwarding, then he could take a stance that he has been acted as a pure agent under Rule 5 (2) of ST (Determination of Value) Rules. In such case the reimbursement amount could be excluded from valuation for ST. However 8 conditions as prescribed under the said rules shall be fulfilled in order to take this stand.

Sir, please explain Rule 10 of POPS for above situation.

Thanks Sir

Sir, in my view since the nature of activity is of transportation of goods, the place of provision would be destination. i.e outside india in case of exports. Since the activity itself is outside tax net, there should not be liability on reimbursement of such expenses.

If I get any suppporting case laws, I will share.

thank you sir