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

Inclusion of recipient-paid expenditures: expenses borne by the service recipient need not be added to taxable service value. Service providers are not required to include expenditures that have been incurred and paid by the service recipient themselves when determining the value of taxable services under the valuation rules; expenditures borne directly by the recipient do not form part of the provider's taxable service consideration.