Applicability of Service tax on reimbusements of expenses

[Asked by Guest]

whether reimbusements of expenses is taxable under service tax upto 31-03-2006?

AI Summary

Service tax on reimbursements: only genuine out-of-pocket expenses for a client escape tax; bundled reimbursements taxable.
Actual out of pocket expenses incurred on behalf of the service recipient and evidenced by facts and circumstances are not liable to service tax, whereas amounts treated as part of service consideration are taxable; reimbursements for materials are distinct and generally excluded from service tax, and values should not be artificially bifurcated to avoid tax.