CESTAT ruled that reimbursable expenses received by service ...

Reimbursable Expenses and Logistics Income Not Subject to Service Tax Under Sections 66 and 67

February 13, 2025

Case Laws Service Tax AT

CESTAT ruled that reimbursable expenses received by service providers alongside service fees are not subject to service tax, following SC's precedent in Intercontinental Consultants case. The tribunal invalidated service tax demands on port congestion, storage, seal amendment, and detention charges, deeming Rule 5(1) of Service Tax Valuation Rules 2006 ultra vires to Sections 66 and 67. Additionally, citing Tiger Logistics precedent, CESTAT held that logistics income and markup on ocean freight are not taxable services. The appellate authority's findings imposing service tax on these components were set aside as legally unsustainable. The appeal succeeded with both demands being overturned as they exceeded statutory scope.

View Source

← Previous

CESTAT ruled that reimbursable expenses received by service ...

Reimbursable Expenses and Logistics Income Not Subject to Service Tax Under Sections 66 and 67

February 13, 2025

Case Laws Service Tax AT

You may also like:

CESTAT determined reimbursed expenses received by a Customs House Agent (CHA) from clients are not includible in the taxable value for service tax assessment. Following...

Demand for service tax on commission received on vehicle sales, sales promotion, and incentives under 'Business Auxiliary Services' set aside as show cause notice failed...

Service tax liability - valuation - reimbursable expenses cannot be added in the assessable value of the C&F services, service tax is payable only on the commission and...

Impugned show cause notice for shortfall in service tax payment based on Rule 5(1) of Service Tax (Determination of Value) Rules, 2006 quashed as ultra vires Section 67...

Valuation - C&F agent service - inclusion of reimbursement of expenses - charges collected for activities like loading, unloading, etc are includable in the assessable...

Valuation - Clearing and Forwarding Agency Service - inclusion of reimbursable expenses in assessable value - only with effect from May 14, 2015, by virtue of provisions...

Demand of service tax - Valuation - TDS deposited to the Income Tax department in relation to the payment made to the Foreign Service Provider - It can be seen from...

The appellant was not liable to pay service tax on the expenditure reimbursed by group companies, as the expenses were not shown to be consideration for services...

Reimbursable expenses cannot be added to the gross value for discharge of services tax - AT

CESTAT ruled reimbursement expenses of salary incurred during manpower supply services (2010-13) are not includible in taxable value for service tax purposes when acting...

The SC upheld the Delhi HC decision in Intercontinental Consultants & Technocrats Pvt. Ltd. vs. UOI, holding that reimbursable expenses incurred by the petitioner for...

Appellant paid service tax on entire value of cleaning services, but for remaining services paid tax only on margin money after deducting expenses. Commissioner...

Demand of service tax - reimbursement expenses - The appellant had agreed to pay a fixed monthly amount to HLL as a consideration for management services - The...

Valuation - inclusion of reimbursable expenses in assessable value - only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable...

The charges collected by the appellant from customers towards statutory obligations like electricity charges, water charges, and legal fees are reimbursable expenses and...

Quick Updates: