service tax on out of pocket expenses

Expenses reimbursed to a prue agent are not chargeable to service tax. Barring this, all other out of pocket expenses are includible in the value of service for charging service tax. See the rules https://www.servicetax.gov.in/value-rules.htm

Under the ST( determinationof value) Rules 2006 reimbursements are liable. The Rules however appear to gop beyond the section 67 which talks about value charged for such services. Preferable topay on the gross amount including the reimbursements unless excluded under Rule 5 (2) as pure agent.
 

Yes As Per Sec 67,sub rule 2

If you are incurring these expenses in the capacity of pure Agent you can Get the reimbersement,without the Libility of S.T on them.

There are 4 conditionsas per said section to check the capacity of pure agent.