Service tax applicability

This query is : Resolved

Santos (Querist)
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01 February 2012
Dear ALL,

Can service tax is applicable on electricity charges.

I have given my space on rental for tower installation. Also i have paid the electricity connection and monthly i am charging as per the electricity reading. Can I charge service tax on that electricity charges.

Please advice.

Regards,

Santosh

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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01 February 2012 If you have a service tax registration then you have to charge service tax and remit the same to the government (subject to exemption limit).

However, if you are claiming electricity charges as a reimbursement, then you can obviously claim back what you have paid to the electric authorities.