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Do we need to Charge S.Tax

This query is : Resolved 

04 May 2010 Our organisation is having certain property rights which we have assigned to other organisation as per the agreement. It was agreed that cost of that property light electricity,etc., would be beared by other organisation. Since the property rights is in our name, bills of electricity comes in our name. We are raising debit note in the other organisation's name for the actual expenses paid towards electricity.
DO we need to charge s.tax?

04 May 2010 You are collecting the various charges as pure agent. No service tax.

04 May 2010 Can you provide any refer in Service Tax Act/Rule

04 May 2010 I am looking forward for refer. please guide me

04 May 2010 Please refer to Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006.

04 May 2010 Do we need to enter into any agreement with other organisation expressly saying that we are pure agent ?

04 May 2010 No. The nature of transaction shall determine, whether yiu are a pure agent or not.


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