https://www.taxtmi.com/caselaws?id=768535 CESTAT Chennai held that service provider was not liable to pay service tax on reimbursable expenses collected from clients through debit notes. Following SC decision in UOI v Intercontinental Consultants, the tribunal ruled that Rule 5(1) of Service Tax Valuation Rules 2006, which required inclusion of reimbursable expenses in taxable service value, was ultra vires Sections 66 and 67 of the Act. The demand for service tax on reimbursable expenses, along with interest and penalty, was set aside. Appeal allowed. en-us Tue, 08 Apr 2025 00:00:00 +0530 Wed, 09 Apr 2025 07:42:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768535 CESTAT Chennai held that service provider was not liable to pay service tax on reimbursable expenses collected from clients through debit notes. Following SC decision in UOI v Intercontinental Consultants, the tribunal ruled that Rule 5(1) of Service Tax Valuation Rules 2006, which required inclusion of reimbursable expenses in taxable service value, was ultra vires Sections 66 and 67 of the Act. The demand for service tax on reimbursable expenses, along with interest and penalty, was set aside. Appeal allowed. Case-Laws Service Tax Tue, 08 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768535