Service tax on out of pocket expense

Dear All,

I want to know, wheather service tax applicable on "OUT OF POCKET" expense spend by service provider for service contract done. (like, research companies, event management, legal advisory).

Also give details about circular issued by governemnt for service tax applicable or not applicable. So, can i argue to concen dept. 

Rajiv

Replies (1)
As per Rule 5(2) of Service tax (Determination of Value) Rules, 2006 with the specified conditions, reimbursements are not taxable if incurred as pure agent. Good luck!

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