TaxTMI 
TaxTMI 
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
Electricity charges recover on cost to cost basis is taxable ?
04 Jun 2015 
4 Replies 
13716 Views Asked by
Pure agent exclusion: cost-to-cost electricity recoveries not taxable if supplier acts as pure agent and bill in recipient's name.
Whether electricity recoveries by a provider are taxed hinges on classification and the pure agent exclusion: if costs are incurred and billed in the recipient's name and no markup is charged, excluded from taxable value under valuation rules; if the bill is in the provider's name or the transaction is characterised as supply of goods (sale of electricity), the recovery may not qualify for exclusion and may instead be treated as sale or part of the taxable service value. Administrative guidance also addresses exemption ceilings and Cenvat credit implications. (AI Summary)
Whether electricity recoveries by a provider are taxed hinges on classification and the pure agent exclusion: if costs are incurred and billed in the recipient's name and no markup is charged, excluded from taxable value under valuation rules; if the bill is in the provider's name or the transaction is characterised as supply of goods (sale of electricity), the recovery may not qualify for exclusion and may instead be treated as sale or part of the taxable service value. Administrative guidance also addresses exemption ceilings and Cenvat credit implications. (AI Summary)