Service Tax on reimbursement of travel and accommodation expenses.

The Finance Act 2015 says :

 In section 67 of the 1994 Act, in the Explanation, for clause (a), the following

• clause shall be substituted, namely:—

• ‘(a) “consideration” includes–

• ( i) any amount that is payable payable for the taxable taxable services services provided or to be provided;

• (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service,

• except in such circumstances, and subject to such conditions, as may be prescribed;

But if you come under criteria of PURE AGENT, you can get some relief.

For details refer: https://www.finsys.co.in/ecirculars/112_e_circular_service_tax_on_reimbursements_dt_5_8_2015.pdf