2008 (4) TMI 122 - AT - Service Tax

Manpower recruitment agency and security services - reimbursement of actual expenses towards salary of the employees - applicant claim that such reimbursed amounts cannot be treated as part of the gross amounts received by them - Prima facie, we find that the value of so-called reimbursed amount shall be part of gross receipts on which service tax is payable - Taking into account the financial hardship urged, stay is partly granted

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled that reimbursed amounts claimed by a manpower recruitment agency as part of actual expenses are considered gross receipts for service tax purposes. The appellant was directed to deposit 50% of the confirmed service tax amount within eight weeks, with the balance amount and interest waived pending appeal.