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If electric charges received from customer over and above rent..is it taxable? or not?

10 February 2018

Hello , can anyone help with the following query? Is it possible for supplier of renting service provider to
charge electric expense in bill as extra charges recovered over and above rent?. And not to charge gst on same? For eg . Rent 10000 on which gst is 1800 collected. And electric expense 1000 also collected as just reimbursement expense and no gst on same?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 10 February 2018

Fixed charge will be taxable, but not reimbursement of exact bill amount.....

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gaurav dhole (39 Points)
Replied 10 February 2018

thank you sir dhirajlal rambhia. but sir the thing is we dont know the exact cost of electricity unit..it changes as consumption increases. how can i charge exact cost per unit? i can calculate no of units consumed. but can not find cost per unit. can you help with it.?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 10 February 2018

Any advance or estimated charge will fall under fixed charge....... while reimbursement of exact bill amount (possible for independent meter) for units already consumed will be out of GST levy.