𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗥𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗮𝗯𝗹𝗲 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Reimbursable expenses, such as salary payments and related costs for seconded employees, cannot be included in the gross value for the levy of service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Boeing India Defense Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Are reimbursable expenses includible in the gross value for service tax calculation? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant reimbursed salary and related expenses for seconded employees under a salary reimbursement agreement with TBC. The department demanded service tax on these reimbursable costs, claiming they were part of consideration for manpower services.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that reimbursable expenses are excluded from the gross value for service tax under Section 67 of the Finance Act, 1994, citing the Intercontinental Consultants case. Service tax value is limited to the consideration for services rendered. The department’s appeal was dismissed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Boeing India Defense Pvt. Ltd. vs. Principal Commissioner of Central Goods & Service Tax, Delhi South Commissionerate 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 50379 of 2021 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 May 2023 📜 This ruling confirms that reimbursable expenses, including those for seconded employees, are not taxable under service tax provisions.