Electricity charges recover on cost to cost basis is taxable ?

[ashwin mehta]

Dear Sir / Madam,

We are Mall company. We charged to our unit holder electricity on cost to cost basis i.e no margin.

Is service tax is applicable on this collection in today scenario.

Thanks & Regards,

Ashwin Mehta

AI Summary

Mall Company Questions Service Tax on Electricity Charges; Pure Agent Status and CESTAT Mumbai Case Considered A mall company inquires whether electricity charges recovered on a cost-to-cost basis from unit holders are subject to service tax. One respondent suggests that if the mall acts as a pure agent, service tax is not applicable. Another clarifies that if the electricity bill is in the mall's name, it is not a pure agent service, and service tax should apply. A third response references a CESTAT Mumbai case, asserting that electricity charges are not taxable as they are considered a sale of goods. Additional guidance is provided from a government circular on service tax exemptions for Resident Welfare Associations.