Reimbursed expenses may form part of taxable service receipts, with partial pre-deposit directed pending compliance.

Amounts claimed as reimbursement of actual expenses were treated as prima facie includible in the taxable gross receipts for service tax purposes. On that basis, the Tribunal directed deposit of 50% of the confirmed service tax demand within eight weeks and granted waiver of pre-deposit and stay of recovery for the balance, subject to compliance.

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Issues: Whether amounts claimed as reimbursement of actual expenses form part of the taxable value for service tax purposes, and whether the appellant was entitled to waiver of pre-deposit of the disputed tax demand.

Outcome: The Tribunal took a prima facie view that reimbursed amounts would form part of gross receipts on which service tax is payable, and directed deposit of 50% of the confirmed service tax demand within eight weeks, with waiver of pre-deposit and stay of recovery for the balance amount subject to compliance.

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