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Inclusion of value of mandap + electricity charges in taxable Mandap Keeper Service, Service Tax |
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Inclusion of value of mandap + electricity charges in taxable Mandap Keeper Service |
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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.
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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.
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.
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
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