https://www.taxtmi.com/caselaws?id=421752 Reimbursable expenses could not be included in the value of taxable services under Rule 5 of the Service Tax (Determination of Value) Rules, 2006 because valuation under Sections 66 and 67 of the Finance Act, 1994 is confined to the consideration for the service actually rendered. The Supreme Court ruling in Intercontinental Consultants confirmed that subordinate legislation cannot enlarge the tax base beyond the parent statute, and Rule 5 was therefore ultra vires to that extent. The 2015 amendment to Section 67 was treated as a prospective substantive change, not a retrospective validation of earlier levies. The earlier demand based on such expenses was set aside and remitted for reconsideration in light of the binding precedent. en-us Wed, 30 Mar 2022 00:00:00 +0530 Mon, 02 May 2022 08:41:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421752 Reimbursable expenses could not be included in the value of taxable services under Rule 5 of the Service Tax (Determination of Value) Rules, 2006 because valuation under Sections 66 and 67 of the Finance Act, 1994 is confined to the consideration for the service actually rendered. The Supreme Court ruling in Intercontinental Consultants confirmed that subordinate legislation cannot enlarge the tax base beyond the parent statute, and Rule 5 was therefore ultra vires to that extent. The 2015 amendment to Section 67 was treated as a prospective substantive change, not a retrospective validation of earlier levies. The earlier demand based on such expenses was set aside and remitted for reconsideration in light of the binding precedent. Case-Laws Service Tax Wed, 30 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421752