Service tax on rent and electricity exp

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1.We have made Leave and License agreement for Premises , under which we are paying fixed rent per month and as per agreement electricity charges as actual.

 2 Lessor issues debit note for electricity charges used by us in the said premises but add service tax @ 12.36% on electricity charges.My question is whether service tax charged on debit note is correct?? If yes Under which category He may pay the same.??

pl. guide me

Replies (8)
Service tax on electricity is not chargeable as it is not a service.
Dear Panchal, Elictricity is not at all a service. It is purly supply activity. About debit note, service tax can be charged on debit note,provided if it is relates to service activity. PLs check the debit note, wther the lesser having reg under serivce tax dept. If yes, pls check under which service he got regn. If the lesser has done only liasioning services between the electricity board and you, then he can claim the service tax other wise there is no service tax on electricity charges.
Service Tax liablity depends on your Agreement among also, reimbursments of expences for providing service are chargeble under Service Tax. B.V.K.Nageswara Rao, Ph: 099891 57666, Email: nageswararao.bommakanti @ ril.com
Before starting the production the company has paid service tax on freight of capital goods and raw material.Can the Company claim the modvate immediatly in both of cases ?

The Amount Of  Invoice Rs 46000 Without Service Tax . But We Not claimed Service Tax Previous invoice what  Pay  service Tax Rs 5686.                                     


Dear Sir,

Please clear the below query:

1. we have made 2 aggreement  one is for rent with individual and other with Ltd Company. we paid rent to individual and electricity & Maintenance to Ltd company. we have not paid to service tax on rent . but ltd company is covered under "Renting of Immovable Property Services" which is charged service tax on Maintenance & Electricity Charges uder the service category  "Renting of Immovable Property Services".

2 Please clear me under the  "Renting of Immovable Property Services" category the Ltd Company charged Service Tax on maintenance & Electricity charges.

Hi

The aspect is not very clear

However let me clarify the subject

Rent usually covers the use of space as such covered under service tax

under renting of immovable property w.e.f. 01/06/2007

Having two agreements does not have any impact on the service as we

have to look into the substance of the service

Electricity is not covered under Service tax as this service is

rendered by the Provider of Electricity and what you are merely

recovering is the charges, provided there is no mark up or any

addition over and above the Electricity bill

This can alwasy be excluded.

Maintenance is covered under Repairs and Maintenance Services as such

service tax is payable

Hope this clarifies , still if you have any doubts do let me know

I required information regarding service tax on commercial rental property.


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