Applicability of service tax on reimbusment of electriciticy

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?

Replies (2)

if amount is remibursment against actuals and billed seperately than service tax is not applicable

Agreed with Dayananda but also to be noted that X should not charge anything more than actual electricity charges.

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