Service Tax and R&D Cess

[Krishan Gopal]

Pls. advice on below point.

1. Whether Service Tax is payable on reimbursement of expenses charged seperately against imported Technical Services.

2. Whther R&D Cess will be paid on reimbursement of expenses against imported services. If yes, can we claim exemption of R&D cess towrds payment of service tax.

AI Summary

Clarification Sought on Service Tax and R&D Cess Applicability for Imported Technical Services Reimbursements; Offset Confirmed. A discussion was initiated regarding the applicability of Service Tax and R&D Cess on reimbursements for imported technical services. The query sought clarification on whether Service Tax is payable on such reimbursements and if R&D Cess applies, whether it can be offset against Service Tax. The response indicated that the issue of Service Tax on reimbursements is disputable and could be contested at a higher level. It was confirmed that R&D Cess payments can indeed be adjusted against the Service Tax payments.