Is Reimbursable expenses included in Assessable value

[Guest]

Dear Sir,

IS Reimbursable expenditure related to travel and hotel expenses charged separately in the invoice say for example Erection and Commissioning service is to be included in Taxable value for calculating Service tax value, and if theservice provider has included in taxable value and has charged service tax to us on that value and we had availed service tax credit of such as a input service, Will be any issue for us, Please expalin, Pls give any reference regarding this,Thanks and regards.

AI Summary

Debate on Including Reimbursable Expenses in Service Tax Value; Referencing InterContinental Judgment & 2006 Rules A discussion on whether reimbursable expenses, such as travel and hotel costs, should be included in the assessable value for service tax calculation. Various contributors referenced legal judgments and rules, noting that reimbursable expenses are typically not included in taxable value if they meet specific conditions, such as being incurred on behalf of the service recipient and reimbursed on an actual basis. The InterContinental Judgment and Service Tax (Determination of Value) Rules, 2006, were cited. Contributors advised consulting with tax professionals for specific cases and emphasized that CENVAT credit might still be available even if service tax is charged.