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<h1>Clarification Issued on Reimbursable Expenses in Service Tax Valuation under 2006 Rules; Compliance Urged to Avoid Penalties.</h1> The circular addresses the inclusion of reimbursable expenditures in the valuation of taxable services under the Service Tax Determination of Value Rules, 2006. It clarifies that expenditures incurred by service providers, such as Custom House Agents, cannot be excluded from taxable service value unless they meet all conditions for being a 'Pure Agent.' The document lists various charges that do not qualify under the Pure Agent category, highlighting that some agents are incorrectly excluding these expenses or collecting extra amounts. The circular urges compliance with valuation rules to avoid penalties and interest for service tax shortfalls.