TaxTMI 
TaxTMI 
Deal friends,
Service tax on indirect expenses can be claimed or not?
Service tax on indirect expenses can be claimed or not?
19 Feb 2013 
1 Reply 
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Pure agent principle: reimbursements of indirect expenses treated as pass throughs are not subject to service tax.
Indirect expenses reimbursed as true pass-throughs under the pure agent principle, incurred on behalf of the principal at actuals without markup or risk, do not form part of the taxable value and are not chargeable to service tax; appropriate documentation is required to establish this treatment. (AI Summary)
Indirect expenses reimbursed as true pass-throughs under the pure agent principle, incurred on behalf of the principal at actuals without markup or risk, do not form part of the taxable value and are not chargeable to service tax; appropriate documentation is required to establish this treatment. (AI Summary)
