reimbursement

This query is : Resolved 

16 August 2009 hi...........i m final student
i want to know that from when reimbursement become taxable for service tax purpose
if they r from service tax valuation rules
2006 then in 2003's definition it is givcn that service tax is liable is liable on gross amount
so how can we say that reimbursements are not include in gross amount
please give me answer descriptively with rule no. or sec. no.
thank u
waiting for quick response

17 August 2009 Section 67 has not changed even now therefore anything not in line with sec.67 in the rules wouldbe ultra vires. In my view the rules have ptravelled beyoind the law and are liable tobe struck down when taken up at the high court.
Having said that all clients cannot appraoch the HC therefore it is advisable that they charge the client of r the reimbursements after 19.4.2006 [ prior to thius date decisions of tribunal - Scott Wilson Kilaptrick + other) exist stating the exclusion possible.
If the same is not being recovered form the client then it could be paid under protest.

17 August 2009 thank u sir but how can i prove that before 19.4.2006 reimbursements were not included for service tax purpose because in service tax rules 2003 its given that service tax will liable on gross amount so give me the cases names of india or give me the para no. or sec. no. from that i can say that before 19.4.2006 reimbursements were not taxable after that no problem only pure agant can be excluded that i know
waiting for quick respons and again thank u for previous reply


17 August 2009 thank u



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