From the Desk of J.K. Mittal
FCA, FCS, LLB
Advocate, Supreme Court & Delhi High Court
Co-Chairman, National Council (Indirect Taxes), ASSOCHAM
SUPREME COURT HELD NO SERVICE TAX ON REIMBURSEMENT OF EXPENSES
Levy of the Service Tax on reimbursement was a contentious issue. The department raises the huge demand of tax on such reimbursement of expenses taking shelter of rule 5 (1) of Service Tax (Determination of Value) rules 2006, which was stuck down by Delhi High Court.
The revenue challenge the same before the Supreme Court on 07.03.2018, the Supreme Court decided by the detailed judgment of 45 pages and held in favour of the assessee that no service tax is leviable on reimbursement of expenses and uphold the Delhi High Court Judgment and dismiss the revenue appeal.
This Judgment would help the large number of tax payers.
We are proud that our firm has been the pioneer on this issue and successfully argued the matter both in before Supreme Court & Delhi High Court and got relief for the tax payers.