Reimbursement of expenses Import of Service- Service tax chargeability

[SANDESH SHINDE]

Reimbursement of expenses Import of Service- Service tax chargeability
Dear Sir, Is Service tax chargeable on reimbursement of expenses in case of import of Service. Service such as a video conference was held in the Ho office of Mumbai and for the authority for SYSTEM USAGE CHGS-VIDEO CONFERENCE SYSTEM WITH our Parent company (Japan) charges were paid. Please explain regarding this, Pls give any reference regarding this. Thanks and regards.

AI Summary

Service Tax on Import of Services: Rules 3-6 Apply Post-2012 for Valuation; Rule 7(1) Was Pre-2012 Standard. A forum participant inquired about the chargeability of service tax on the reimbursement of expenses related to the import of services, specifically for a video conference system used between a Mumbai office and a parent company in Japan. The response clarified that from July 1, 2012, the valuation of taxable services provided from outside India is governed by rules 3 to 6 of the Service Tax (Determination of Value) Rules, 2006. Prior to this date, rule 7(1) under the same rules applied, which based the value on the actual consideration charged for the services.