2017 (11) TMI 1405

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....basis in terms of Section 66A the appellants duly discharged Service Tax on this service. However, the Revenue entertained a view that certain additional amounts shown as reimbursable expenditure, reimbursed by the French holding company is also to suffer service tax under the same category. he employees of holding company during their visit in India, which is part of the service transaction of IPR, incurred certain expenditure. The same was borne by the appellant and later reimbursed by the French holding company. Such expenditure was sought to be included in the overall taxable consideration on the ground that these are expenditure/cost for providing service and in terms of Rule 5 of Service Tax Valuation Rules, all cost and expenses for ....

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....re is no ground to tax on the considerations, which were reimbursed to them. They have not incurred any expenses for receipt of service, over and above, the actual consideration on which the service tax stands discharged. 4. On the outstanding consideration to be paid to the holding company as on 10.05.2008, it is submitted that the amendment carried out to create a fiction of payment of consideration between associate enterprises is prospective, effective from that date and any amount outstanding on that date shall not be liable to tax on reverse charge basis. Reliance was placed on the decision of Tribunal in the case of Gecas Services India Pvt. Ltd. - 2014 (36) STR 536 (Tri.-Delhi). 5. The ld. A.R. supported the findings of the or....