SUPREME COURT HELD NO SERVICE TAX ON REIMBURSEMENT OF EXPENSES – From the Desk of J.K. Mittal

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.

Click here to read the full judgement

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