A construction company has a building in which finishing works are being carried. Some of the units are sold and occupied by the purchasers. The Company pays the electricity bills for the entire building. However, it recovers the same from the occupants on the basis of usage through meters fixed at these units.
No markup is charged by the company, and bills are raised on cost incurred basis.
Whether Service tax would be chargeable in this case for bills to be raised on account of electricity expenses incurred for the month of April 2012?
Guest
Guest
(Expert)
10 May 2012
Service tax is not chargeable here as it is recovered from tenants
CAclubindia
