https://www.taxtmi.com/article/detailed?id=6762 Reimbursement of expenses recovered by a company procuring services on behalf of group companies under a cost sharing agreement is not treated as consideration for a taxable service where the company satisfies the conditions of Rule 5(2) as a pure agent. The tribunal found such receipts to be mere reimbursements rather than payment for Business Support Services, relying on administrative circulars and precedent, and noted that a widened statutory definition of consideration requires applying Rule 5(2) so only expenses the recipient was obliged to pay but paid by the provider qualify for exclusion. en-us Wed, 30 Mar 2016 09:49:30 +0530 Wed, 30 Mar 2016 09:49:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=6762 Reimbursement of expenses recovered by a company procuring services on behalf of group companies under a cost sharing agreement is not treated as consideration for a taxable service where the company satisfies the conditions of Rule 5(2) as a pure agent. The tribunal found such receipts to be mere reimbursements rather than payment for Business Support Services, relying on administrative circulars and precedent, and noted that a widened statutory definition of consideration requires applying Rule 5(2) so only expenses the recipient was obliged to pay but paid by the provider qualify for exclusion. Articles Service Tax Wed, 30 Mar 2016 09:49:30 +0530 https://www.taxtmi.com/article/detailed?id=6762