Reimbursement of electricity charges

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Querist : Anonymous (Querist)
17 May 2013 A hotel lets out a portion of its building to a person for commercial use and collects a fixed monthly rental for premises and fixed monthly charges for use of electricity. Is service tax applicable on the electricity charges received?

18 May 2013 No servicetax is applicable on re-imbursement of expences

provided there is no profit element in re-mbursement expences and only actuall expences are to be re-imbursed, and all bills for expences incured were provided


18 May 2013 service tax rule 5(1) may suggest us to charge service tax on re-imbursement is ultravires the act

please refer

delhi highcourt judgement in the case of

intercontinentalconsultants and technco cart pvt ltd

https://www.caclubindia.com/experts/service-tax-on-reimbursement-of-expenses-1310799.asp

http://www.kpmg.com/IN/en/services/Tax/FlashNews/Rule-5-Service-Tax.pdf


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