Service tax on indirect expenses can be claimed or not?

[krishnaveni kumar]

 

Deal friends,

Service tax on indirect expenses can be claimed or not?

[YAGAY and SUN]

If it pertains to reimbursement and related to pure agent, then, it is not chargeable.

AI Summary

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.