Service Tax On Supervision and Travelling expense

[Guest]

Dear Sir,

I have received a supervision bill including travelling expenses like accomodation, food, travelling. he has levied the service tax on full amount including travelling expense.

Please explain.

Thanks & Regards,

Sanjay Vasava

[Himansu Sekhar]

Service tax is charged correctly on the full amount which is the gross value as per secv. 67 of the finance act,1994

[KASTURI SETHI]

Yes. No doubt. ST is applicable on full value.

[Mr Rao]

Dear querist,

I agree with experts.

AI Summary

Service tax on full invoice value: supervision fees including travel expenses are treated as part of gross taxable value. Service tax applies to supervision charges including travelling expenses; the full billed amount constitutes the gross value for valuation under Section 67 of the Finance Act, 1994, and tax is chargeable on the entire invoice including accommodation, food and travel.