https://www.taxtmi.com/caselaws?id=789237 For service tax valuation, expenses incurred by a clearing and forwarding agent in performing its own contractual functions are part of the gross taxable value and cannot be split out as reimbursement merely because the principal later repays them. Only payments made by the service provider on behalf of the service recipient under a legal or contractual obligation qualify as deductible reimbursements. Transportation charges for delivery using the agent's own transport may be excluded only if the agreement and records establish a true cost-to-cost reimbursement; otherwise, they remain subject to tax. The valuation issue therefore turns on whether each amount satisfies the test of actual reimbursement and requires proper segregation of includible and excludible costs. en-us Thu, 02 Apr 2026 00:00:00 +0530 Mon, 06 Apr 2026 08:51:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789237 For service tax valuation, expenses incurred by a clearing and forwarding agent in performing its own contractual functions are part of the gross taxable value and cannot be split out as reimbursement merely because the principal later repays them. Only payments made by the service provider on behalf of the service recipient under a legal or contractual obligation qualify as deductible reimbursements. Transportation charges for delivery using the agent's own transport may be excluded only if the agreement and records establish a true cost-to-cost reimbursement; otherwise, they remain subject to tax. The valuation issue therefore turns on whether each amount satisfies the test of actual reimbursement and requires proper segregation of includible and excludible costs. Case-Laws Service Tax Thu, 02 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789237