TaxTMI 
TaxTMI 
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?
Service tax on reimbursement
29 Apr 2009 
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Service tax on reimbursements: earlier non taxable treatment contested, requiring reliance on circulars and case law.
The note addresses a departmental demand for service tax on amounts treated as reimbursements where no tax was paid; it highlights that prior to the Service Tax (Determination of Value) Rules, 2006, reimbursements were commonly treated as non-taxable and advises reliance on relevant circulars and case law to contest or support the demand. (AI Summary)
The note addresses a departmental demand for service tax on amounts treated as reimbursements where no tax was paid; it highlights that prior to the Service Tax (Determination of Value) Rules, 2006, reimbursements were commonly treated as non-taxable and advises reliance on relevant circulars and case law to contest or support the demand. (AI Summary)