Service Tax on reimburshment of electricity and maintenance

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Manoj

Head- Finance

43 Points Posted on 16 March 2010

A company has given a commercial property on rent. As per ther terms of the agreement the tenent is required to reimbursh actual electricity and maintenace which the compnay are paying to the Owners association.

Please let me know whether the service tax will be applicable on the reimburshment of charges. Please also state the provisions and/or notificate in support of your answer.

Thanks

Replies (3)

ACMA Obulirajan R

M.Com ACMA

1021 Points Posted on 16 March 2010

1. There is no Service tax on rent and it was withdrawn propably last year.

2. When we reimburse any amount to any body we no need to pay service tax since it is purely a reimbusrement in nature.

3. Regarding the notification i will update soon

/articles/no-service-tax-on-commercial-rent-4163.asp

Thanx,

Manoj

Head- Finance

43 Points Posted on 16 March 2010

Originally posted by : OBULIRAJAN R
	1. There is no Service tax on rent and it was withdrawn propably last year. 2. When we reimburse any amount to any body we no need to pay service tax since it is purely a reimbusrement in nature. 3. Regarding the notification i will update soon /articles/no-service-tax-on-commercial-rent-4163.asp Thanx,

Please refer Finance Bill 2010 where the amendement has been given for sec 65 (105)(zzzz) and section 76. Rent is now liable for service tax with retrospective effect 01.06.2007.

Dinesh pratap singh

C.A. Final Student

70 Points Posted on 21 March 2010

Dear Oblirajan R for your knowl. rent on commercial property further taxable as service by Budget 2010-11 with retro. 1-06-2007.

So Mr. Manoj rent is taxable present time, but reimb. expe. is taxable if such expe. directly releted to service e.g. in case of consultancy service traveling exp. of cosultant/employee of consu. is taxable as service

But in your case reimbursh actual electricity and maintenace expe. are not taxable.