Reimbursement of expenses Import of Service- Service tax chargeability, Service Tax

[SANDESH SHINDE]

Reimbursement of expenses Import of Service- Service tax chargeability
Dear Sir, Is Service tax chargeable on reimbursement of expenses in case of import of Service. Service such as a video conference was held in the Ho office of Mumbai and for the authority for SYSTEM USAGE CHGS-VIDEO CONFERENCE SYSTEM WITH our Parent company (Japan) charges were paid. Please explain regarding this, Pls give any reference regarding this. Thanks and regards.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

With effect from 1.7.2012, taxable services provided from outside India , valuation will be on the basis of rule 3 to 6 of Service Tax (Determination of Value) rules, 2006 as applicable.

Prior to 1.7.2012 rule 7 (1) of Service Tax (Determination of Value) rules, 2006 provided that the value of any taxable service received under the provisions of Section 66A of finance Act, 1994 shall be taken to be such amount as is equal to the actual consideration charged for the services so provided or to be provided. this rule was omitted with effect from 1.7.3012.