Inclusion of value of mandap + electricity charges in taxable Mandap Keeper Service

[Subodh Shah]

Mandap Keeper Service: Service provider is charging for mandap + electricity separately in the invoice at actuals. Will this be included in the value of taxable services.

AI Summary

Mandap and Electricity Charges Must Be Taxed Under Mandap Keeper Service; Refer to Service Tax Rules 2006, Rule 5. A query was raised about whether charges for mandap and electricity, listed separately on invoices, should be included in the taxable value for Mandap Keeper Service under service tax. Three responses were provided. One stated that service tax applies to the total amount charged, including separately listed expenses, as they cannot be considered reimbursements. Another response cited Service Tax Rules 2006, Rule 5, explaining that separate listing does not exempt these charges from tax. The third response agreed that both charges should be included in the taxable amount, as electricity, despite being a good, is not exempt from service tax.