Service Tax on Electricity Provided by Malls or Commercial


11 April 2008 I want to know is there is the service tax on the electricity provided by the malls or commercial building? My office is into one Mall or Shopping Complex & TATA is providing the electricity to this Mall but TATA has not charged any service tax. I have received the bill from the Mall inculding service Tax. Kindly solve my query.

19 April 2008 Providing electricity is not a service as it is already subject to a duty.

It will invariably increase the cost of services.

The mall cannot charge service tax as it is not a service, for use of space it is mandatory to include the element.

If the mall can establish that this cost is apportioned or if you have a separate meter installed the same can escape service tax as it is only reimbursment of expense and service is not involved.

24 April 2008 I had checked with the concerned person of the Mall or shopping complex & according to him they are converting the electricity form High Tension to Low Tension & therefor the Service Tax is applicable on the same. Please advice is the service tax will be applicable now.




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