Reimbursement of expenses


26 September 2013 As per Rule 5 of service tax (determination of value) rules,2006 the reimbursement of expenditures or costs should be the part of consideration, but as per sec 67(1)(i) value of consideration shall be the Gross amount charged by service provider for such service. so Rule 5 is ulta virus to the sec 67. so I want to know that such reimbursement of expense should be treated as part of consideration or not?

28 September 2013 Please also read 66F to understand the concept of naturally bundled service. Also it is worth noting the concept of service of a pure agency/angent



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