Service Tax

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A person earns commission income and is liable to pay Service Tax as he has crossed the basic exemption limit. What kind of reimbursement of expenses received by him from the service receiver would be outside the scope of applicability of service tax. Is there any relevant court judgements on the same.

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Any kind of reimbursement of expenses will not be covered for chargeabilitly of service tax since it does not constitute income. Reimbursement of exp is never an income. Its only that whatever we have spent, we receive it back.

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