https://www.taxtmi.com/article/detailed?id=1965 Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006, which mandates inclusion of all provider incurred expenditure in the taxable value, was held ultra vires Sections 66 and 67 of the Finance Act. The valuation for service tax is confined to the gross amount charged "for such service," and delegated rules cannot expand the tax base to encompass reimbursed out of pocket expenses; expenses properly incurred as a pure agent are excluded and double taxation must be avoided. en-us Mon, 10 Dec 2012 08:11:41 +0530 Mon, 10 Dec 2012 08:11:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1965 Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006, which mandates inclusion of all provider incurred expenditure in the taxable value, was held ultra vires Sections 66 and 67 of the Finance Act. The valuation for service tax is confined to the gross amount charged "for such service," and delegated rules cannot expand the tax base to encompass reimbursed out of pocket expenses; expenses properly incurred as a pure agent are excluded and double taxation must be avoided. Articles Service Tax Mon, 10 Dec 2012 08:11:41 +0530 https://www.taxtmi.com/article/detailed?id=1965