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2011 (8) TMI 430 - AT - Service Tax
Reimbursement of expenses - C & F services - The appellants were not paying service tax on the correct taxable value as they were preparing two invoices, one for service charges and another for amounts claimed as reimbursement of expenses incurred towards transportation charges, loading and unloading charges, rent, salary to the staff, electricity, telephone charges, stationery charges, courier charges, etc. - The claim for reimbursement towards rent for premises, telephone charges, stationary charges, etc. amounts to a claim by the service provider that they can render such services in vacuum. - What are costs for input services and inputs used in rendering services cannot be treated as reimbursable costs. - There is no justification on legal authority to artificially split the cost towards providing services partly as cost of services and the rest as reimbursable expenses.