#Reimbursement

The Bombay High Court has mandated that the Zilla Parishad decide pending reimbursement claims from RTE-compliant schools within three weeks, affirming that delayed payments violate the state’s constitutional duty to fund statutory educational obligations. This ruling directly impacts hundreds of private schools financially strained by unreimbursed costs for admitting EWS students, reinforcing that compliance cannot be penalized by administrative inertia.

CESTAT Chennai rules that reimbursement of shared advertising expenses between group companies does not qualify as 'Business Auxiliary Service' under Section 65(105)(zzb) of the Finance Act, 1994, in the absence of a client-provider relationship. The ruling clarifies that cost-sharing arrangements for business promotion are not taxable unless a distinct service is rendered to a specific client, impacting multinational corporations and group entities engaged in joint marketing.