Re: Reimbursement of Actual Expenses, Service Tax

[PONNADA B K RAVIKUMAR]

Dear Sir, We have entered the Manpower contract , in that reimbursement of actual Expenses incurred by Manpower contract , whether in this case service tax is attracted or not, since it is purely a reimbursement of acutal expenses. Hope it is clear.

Posts / Replies

[Rajeev Kalra]

Dear Ponnada,

as per service tax valuation rules, all expenses whether it is actual or otherwise , incurred in the course of providing the output service shall be included in the value for the purpose of charging service tax .

if service provider is "PURE AGENT " of service receiver then only the expenses incurred on behalf of service receiver will not be included in the value  for the purpose of charging service tax.