https://www.taxtmi.com/forum/issue?id=108719 The Finance Bill, 2015 amendment would include reimbursable expenditures charged by a service provider within the definition of consideration for service tax, subject to prescribed exceptions like pure agent. Queries arose whether statutory payments reimbursed to providers and reimbursements for freight, handling and commissions to consignment agents attract service tax and whether CENVAT credit is admissible. Respondents took opposing stands: one treating statutory payments as non-taxable and allowing CENVAT on reimbursements tied to input services under Rule 2L, and another citing case law that reimbursement is not consideration absent a nexus with the service. en-us Tue, 09 Jun 2015 11:55:13 +0530 Thu, 23 Jan 2025 15:56:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=108719 The Finance Bill, 2015 amendment would include reimbursable expenditures charged by a service provider within the definition of consideration for service tax, subject to prescribed exceptions like pure agent. Queries arose whether statutory payments reimbursed to providers and reimbursements for freight, handling and commissions to consignment agents attract service tax and whether CENVAT credit is admissible. Respondents took opposing stands: one treating statutory payments as non-taxable and allowing CENVAT on reimbursements tied to input services under Rule 2L, and another citing case law that reimbursement is not consideration absent a nexus with the service. Discussion-Forum Service Tax Tue, 09 Jun 2015 11:55:13 +0530 https://www.taxtmi.com/forum/issue?id=108719