St in case of electricity bill


This query is : Resolved 

19 February 2016 hiii experts,My question is My client is rendering service of club for which they hired caterer and give them space to prepare food.My client installed electricity submeter and charge electrcity charges in invoice seperately. I am confused whether this would be covered under Pure agent or not?

19 February 2016 Yes sir, it wud be covered under Pure Agent
u wud not be liable for service tax for electricity charges

20 February 2016 If the sub=meter is regularly read by the SEB or Electricity Service Provider, and your client recovers exactly teh same amount charged by the SEB, then the services rendered would be that by a Pure Agent and you would not be liable for collection and payment of service tax on this service. But if the charge is a lumpsum or more than what is charged by the SEB, then the services would not be of a pure agent, but a Business Support Service on which you would be liable to collect Service Tax and remit the same to the credit of the Government.


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