Applicability of service tax on reimbusment of electriciticy

Keval Shah (CA-Final) (306 Points)

08 August 2012  

X Charitable Trust rented a certain space to Y Co. and charges royalty for same. X provides furniture fixtures, electricity to the Y Co.

X reimbuses the electricity charges from Y Co. by raising a Debit Note on Y Co. and does not charge Service Tax on it.


My Question is Should Service Tax charged on REMEMBUSMENT OF ELECTRICITY charges?