Keval Shah (CA-Final) (306 Points)
08 August 2012X Charitable Trust rented a certain space to Y Co. and charges royalty for same. X provides furniture fixtures, electricity to the Y Co.
X reimbuses the electricity charges from Y Co. by raising a Debit Note on Y Co. and does not charge Service Tax on it.
My Question is Should Service Tax charged on REMEMBUSMENT OF ELECTRICITY charges?
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 08 August 2012
if amount is remibursment against actuals and billed seperately than service tax is not applicable
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 08 August 2012
Agreed with Dayananda but also to be noted that X should not charge anything more than actual electricity charges.
CAclubindia
