Valuation - C&F agent service - inclusion of reimbursement of ...

Reimbursable expenses in C&F services, charged as fixed monthly lump sums, must be included in service tax calculations.

May 10, 2024

Case Laws     Service Tax     AT

Valuation - C&F agent service - inclusion of reimbursement of expenses - charges collected for activities like loading, unloading, etc are includable in the assessable value or not - The Appellate Tribunal held that the charges received by the appellant, including reimbursable expenses, were part of the C&F agent service and thus subject to service tax. - The Tribunal observed that the expenses reimbursed to the appellant were not on an actual basis but were fixed on a lump sum per month. Therefore, it was held that these expenses were towards rendering C&F services and should be included in the assessable value for service tax purposes.

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