Service Tax "Valuation of Taxable Service" - Inclusion of Reimbursable Expenditure - Reg

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....325/07-IA Dated: 07.12.2007 Sub: Service Tax "Valuation of Taxable Service" - Inclusion of Reimbursable Expenditure - Reg Reference is invited to provisions of Service Tax Determination of Value Rules, 2006 which came into force with effect from 18.04.2006. The above Rules, inter alia, specify that the expenditure or costs incurred by the service providers as a Pure Agent of the recipient....

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....r example the following reimbursable expenditures are not covered under the ambit of Pure Agent category:- 1. Documentation Charges 2. Forms and Stamp Charges 3. Postage / Courier Charges 4. Fax Charges 5. Telephone Charges 6. Conveyance 7. Transportation Charges 8. Consolidation Charges 9. Palletization Charges 10. Container Weighment Charges 11. Fuel Surcharges ....

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....ding their output service. In some cases it is also noticed that the Custom House Agents are collecting extra amount over and above the expenditure and thus the assessee ceases to be Pure Agent as they are violating one of the eight conditions of Rule (2) of Valuation Rules. It is, therefore, requested that the provisions of Valuation Rules and the Board's clarification may be brought to the notic....