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2018 (9) TMI 1717 - AT - Service TaxValuation - Clearing and Forwarding Agency Service - inclusion of reimbursable expenses in assessable value - Rule 5 of the Service Tax (Determination of Value) Rules, 2006. Held that:- The Hon’ble Supreme Court in the case of M/s. Intercontinental Consultants and Technocrats Pvt. Ltd. [2018 (3) TMI 357 - SUPREME COURT OF INDIA] after analyzing the scope of Rule 5 of the Service Tax (Determination of Value) Rules, 2006, has held that only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax. In the case on hand, the lower authorities have solely relied upon Rule 5 of the Service Tax Rules, 2006 to say that any expenditure or cost incurred by the service provider in the course of providing taxable service of such expenditure or cost shall be treated as consideration which shall be included in the value for the purposes of charging service tax and this was in terms of Section 67 of the Finance Act which prescribed the value of payment of service tax which is on the gross amount by the service provider - the findings of the lower authorities are clearly incorrect and same is not sustainable. Appeal allowed - decided in favor of appellant.
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