We are paying the Electricity city on charges on behalf of our clients and raising the bill by adding 10% as service charges.
Do we have to pay st on full amount or only on service charges portion pls clarify and quote relevent notification circulars
Hi
If it is being reimbursed on actual basis, then, no need to pay the service tax. This aspect has been clarified in a recent judgment.
In my opinion we cannot use intercontinental case here,,because he is not pure agent
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as said by vaibhav best process is
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pass a debit note for electricity charges
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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