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2017 (9) TMI 1004 - AT - Service TaxValuation - reimbursable expenses - includibility - Held that: - the nature of services are such the appellants are managing participation of clients in certain mela, fairs, promotional activities of merchandise, managing events with a aim to propogate the products of the clients etc. - Held that: - exclusion of reimbursement expenditure should be based on pre-arrangement and on actual basis without any mark up. The appellants should have incurred expenditure and got the same reimbursed on actual basis, with supporting document, from the clients. Perusal of various work orders indicate that no such arrangement exist in the present case - Perusal of various work orders indicate that no such arrangement exist in the present case - The appellants are liable to service tax on the gross amount received. They cannot restrict their tax liability to only agency commission in view of the details given in the work orders examined by us. Time limitation - Held that: - A perusal of various work orders clearly shows that the appellants deliberately chose to discharge service tax only on the agency commission or fee which is a small portion of the gross amount. The claim for exclusion of other consideration on the ground that they are reimbursable expenditure is found not tenable. The appellant’s action of not paying service tax on the gross value and claiming bonafide belief is not acceptable - appeal dismissed - decided against appellant.
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