Service Tax liability on reimbursement of Travelling Exp.

This query is : Resolved 

15 September 2008 Please tell me that remibursement of Travelling exp. to a Limited Company Service tax to be charged or not on Travelling Exp. remibursement please give me advice supporting with case laws & sec.

15 September 2008 The concept of reimbursement has been done away with, in view of the new Valuation Rules, 2006 w.e.f 18/04/2006 which state that value shall be the gross amount charged for the service

In the said example, traveling is in relation to providing the service, there is a relationship which is established. Hence covered


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