Service tax on reimbursement

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a portion of receipt treated as reimbursement and no service tax paid on it in the year 2006-06. Department now demanding ST on the reimbursement amount.Is there any case laws?

AI Summary

Service Tax Demands on 2005-06 Reimbursements Questioned; Review Pre-2006 Rules, Circulars, and Case Laws Suggested A query was raised about the applicability of service tax on reimbursement amounts, with a specific situation where no service tax was paid on reimbursements during 2006-06. The tax department is now demanding service tax on these amounts. A response indicated that before the Service Tax (Determination of Value) Rules, 2006, reimbursements were generally not subject to service tax. It was suggested to review relevant circulars and case laws to address the department's demand.