TaxTMI 
TaxTMI 
Dear Sir
Please suggest is case of reimbursement of expenses which is covered under section 67 now under service tax.
In our case we are paying a heavy amount to C&F Agent towards reimbursement expense like freight, rent, telephone charges etc.. out of which some expenses substantiated with bill etc. or some are not.
SERVICE TAX ON REIMBURSEMENT
25 May 2015 
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Reimbursement of expenses: generally taxable under amended consideration definition, but excluded when treated as pure agent under valuation rules.
Reimbursable expenditures are included in the taxable value of a service under the amended definition of consideration, making such reimbursements generally liable to service tax. However, amounts recovered as a pure agent are excluded from value only if all conditions in Rule 5(2) are met, including recipient liability and authorization, separate invoice disclosure, recovery of actual amounts, and absence of title or use by the service provider. (AI Summary)
Reimbursable expenditures are included in the taxable value of a service under the amended definition of consideration, making such reimbursements generally liable to service tax. However, amounts recovered as a pure agent are excluded from value only if all conditions in Rule 5(2) are met, including recipient liability and authorization, separate invoice disclosure, recovery of actual amounts, and absence of title or use by the service provider. (AI Summary)