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.

[Rama Krishana]

Service Tax is payable on gross amount i.e. charging for mandap + electricity charges. Showing some amount as separate expense can not be held as reimbursement of expenses which is not subject to service tax. Therefore service tax is payable on the whole amount charged by the mandap keeper.

[Honey Ahuja]

According to Service tax Rules 2006, Rule 5 , explanation 2, It is immaterial that the details of individual compnents of the total consideration is indicated separately in the invoice.

[Chruchandra Bhide]

As per me It should be included. Even if you are showing it separately and electricity is GOODS, any body is now allowed to trade electricity. Hence it necessary to charge service tax on the gross amount

AI Summary

Taxable value of mandap services includes separately billed electricity, so service tax applies to the total charge.
The full amount charged by a mandap keeper, including separately invoiced electricity charges, constitutes the taxable value of Mandap Keeper Service; invoice itemisation does not convert such components into non-taxable reimbursements, and Rule 5 (Explanation) of the Service Tax Rules 2006 renders details of individual components immaterial to assessing the total consideration for service tax.