https://www.taxtmi.com/caselaws?id=267133 Service tax could not be levied on reimbursable or out-of-pocket expenses recovered by a consulting engineer, because the tax applies only to the consideration for the taxable service and not to expenditure incurred in rendering it. Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 was held ultra vires to the extent it included such reimbursable expenses in the assessable value, since a delegated valuation rule cannot enlarge the charging provision. The analysis also noted the risk of double taxation if actual expenses such as deputation costs, transport, site office rent and accommodation were taxed again as part of service value, and the demand on those amounts was held unsustainable. en-us Tue, 21 Jul 2015 00:00:00 +0530 Fri, 30 Oct 2015 11:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=267133 Service tax could not be levied on reimbursable or out-of-pocket expenses recovered by a consulting engineer, because the tax applies only to the consideration for the taxable service and not to expenditure incurred in rendering it. Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 was held ultra vires to the extent it included such reimbursable expenses in the assessable value, since a delegated valuation rule cannot enlarge the charging provision. The analysis also noted the risk of double taxation if actual expenses such as deputation costs, transport, site office rent and accommodation were taxed again as part of service value, and the demand on those amounts was held unsustainable. Case-Laws Service Tax Tue, 21 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=267133