Hi,
A Mall GENERATES ELECTRICITY through a Diesel Generator and supplies power to its shops. It RE-IMBURSES the expense that it incurs for production of electricity from those shops. No profit is included in this re-imbursement.
The mall does not have any license to generate and supply.
So should the Mall charge SERVICE TAX on the Bill it sends to the shops?
Thank You in advance :)
Generation , transmission and selling of electricity in units is a goods . Hence no service tax is applicable.
Moreover it is pure reimbursement so not lible under service tax.
ok... But if Electricity is goods, then why is there a separate entry in the negative list of service tax for "(k) transmission or distribution of electricity by an electricity transmission or distribution utility" when there is already an entry for (e) trading of goods ??
See in negative list of services it is mentioned as processing amounting to manufacture hence the same is not liable
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