Service tax on Expenditure incurred

[pramod agrawal]

Whether expenditure incurred but paid by the service reciepnt is to be included in the value of taxable services under valuation of services rules

[Surender Gupta]

Service provider is not required to include such expenses provided such expenditure have been incurred by the service recipient on his own.

AI Summary

Expenses Paid by Service Recipient Excluded from Taxable Services Value Under Valuation Rules A query was raised regarding whether expenses incurred but paid by the service recipient should be included in the value of taxable services under valuation rules. The response clarified that the service provider is not required to include these expenses in the taxable value, as long as the service recipient incurred them independently.