Meaning of Consideration for service tax

[paresh ayadi]

dear experts,

We have hie bus for transportation of our employees

as per terms of contract we are reimbursing passenger tax to service provider apart from rent

i want know whether service tax is payable on passenger tax also (under RCM) ?

i have read definition of consideration as per explanation (a) to section 67 and relevant judgment but could not arrived at conclusion as sometimes reimbursement is included and sometimes not..

AI Summary

Consideration for service tax: reimbursed passenger taxes excluded from taxable value and not subject to service tax.
Reimbursed taxes collected and paid to government do not form part of consideration for service tax valuation and must be excluded from taxable value. CBEC circulars excluding State levies from taxable value in analogous services support treating passenger tax reimbursements as not subject to service tax.