Expenses reimbursed to CA Firm not subject to Service Tax

RMA & Associates Vs Principal Commissioner of Service Tax (CESTAT Delhi) The appellant was engaged in providing chartered accountant services. The dispute in the present appeal is regarding the non-payment of service tax on the amount representing reimbursement of expenses like conveyance, travelling and mobile expenses. The issue, in respect of reimbursable expenses has been considered and decided by the Supreme Court in Union of India vs. Intercontinental Consultant and technocrats2. The relevant observations are as follows: “21. Undoubtedly, Rule 5 of the Rules, 2006 brings within its...