Reimbursement of employee-related costs are not vatable as they constitute reimbursements of employee salaries and such emoluments are not chargeable to VAT.

“The Tribunal has also noted that its decision in Techsavvanna case was upheld by the High Court. Accordingly, it holds the view that nothing has been presented before it to persuade it to depart from its previous Judgment. It thus holds the view that the payments made to the Appellant for reimbursement of employee-related costs are not vatable as they constitute reimbursements of employee salaries and such emoluments are not chargeable to VAT.”