A Community hall/Banquet Hall/Samaj Bhawan if collects actual electricity charges specifically by taking the meter reading along with some mark up from the person who takes it on rent and shows it separtely in the invoice as electricity charge. Is service tax to be paid on the same?
Will it be termed as sale of electricity?
Debate on Service Tax Applicability to Electricity Charges in Banquet Halls: Separate Collection vs. Total Bill Inclusion. A discussion on whether service tax applies to electricity charges collected by a community or banquet hall from renters. One participant argues that if actual electricity charges are collected separately without service charges, it is a reimbursement and not subject to service tax. Another participant questions if a markup for maintenance could classify it as a service, suggesting that electricity is essential for the hall's operation. A third participant clarifies that if electricity charges are included in the total bill, service tax applies, but if collected separately for onward deposit, it is not taxable. (AI Summary)
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