Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Service tax on rent and electricity exp

MANISH PANCHAL (service) (174 Points)

26 November 2007

1.We have made Leave and License agreement for Premises , under which we are paying fixed rent per month and as per agreement electricity charges as actual.

2 Lessor issues debit note for electricity charges used by us in the said premises but add service tax @ 12.36% on electricity charges.My question is whether service tax charged on debit note is correct?? If yes Under which category He may pay the same.??

pl. guide me

Reply
Follow
Share

8 Replies

Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 26 November 2007

Service tax on electricity is not chargeable as it is not a service.

Upgrade to CAclubindia Pro. Subscribe Now!

G Teja (Partner) (49 Points)
Replied 26 November 2007

Dear Panchal, Elictricity is not at all a service. It is purly supply activity. About debit note, service tax can be charged on debit note,provided if it is relates to service activity. PLs check the debit note, wther the lesser having reg under serivce tax dept. If yes, pls check under which service he got regn. If the lesser has done only liasioning services between the electricity board and you, then he can claim the service tax other wise there is no service tax on electricity charges.

nageswararao (Mgr - Commercial) (142 Points)
Replied 30 November 2007

Service Tax liablity depends on your Agreement among also, reimbursments of expences for providing service are chargeble under Service Tax. B.V.K.Nageswara Rao, Ph: 099891 57666, Email: nageswararao.bommakanti @ ril.com

(Guest)

Before starting the production the company has paid service tax on freight of capital goods and raw material.Can the Company claim the modvate immediatly in both of cases ?

amitkumar (Installation) (0 Points)
Replied 11 April 2008

The Amount Of Invoice Rs 46000 Without Service Tax . But We Not claimed Service Tax Previous invoice what Pay service Tax Rs 5686.

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

Dear Sir,

Please clear the below query:

1. we have made 2 aggreement one is for rent with individual and other with Ltd Company. we paid rent to individual and electricity & Maintenance to Ltd company. we have not paid to service tax on rent . but ltd company is covered under "Renting of Immovable Property Services" which is charged service tax on Maintenance & Electricity Charges uder the service category "Renting of Immovable Property Services".

2 Please clear me under the "Renting of Immovable Property Services" category the Ltd Company charged Service Tax on maintenance & Electricity charges.