Airfare for Foreign Consultant Not Taxable under Service Tax: CESTAT

CESTAT exempted airfare payments for foreign consultants from service tax, ruling it constitutes pure reimbursement of travel costs, not taxable consideration. The tribunal distinguished between service payments and expense reimbursements, noting the consultancy fees were separately charged and taxed. This ₹18 lakh relief benefits companies engaging foreign experts, clarifying that mere expense processing doesn't create service tax liability. However, the judgment cautions that bundled charges combining fees and expenses may still be taxable. Tax professionals suggest clear contract bifurcation between professional fees and expense reimbursements to avail this benefit.