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TMI BlogGST on recovery of electricity chargesX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir In my factory premises, i have let out space on rent to third party. I have charged GST @ 18% on rent charges. Along with rent, i am also recovered electricity expense on basis of units consumed by tenant and deposit electricity bill to Govt. Whether I am liable to charge GST on reimbursement of electricity expenses. - Reply By KASTURI SETHI - The Reply = In my view,it is not taxable. You ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have neither generated electricity nor supplied electricity. - Reply By KASTURI SETHI - The Reply = Also see the definition of 'pure agent' under Valuation Rules. - Reply By KARAN VERMA - The Reply = Sir As per advance ruling, E square leisure pvt ltd, Maharashtra = 2019 (4) TMI 421 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA , Gst is applicable on reimbursement of electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity expense along with rent. Kindly see the ruling. - Reply By KASTURI SETHI - The Reply = I have posted the same in some other case. In this case the applicant was generating electricity. - Reply By KASTURI SETHI - The Reply = In AAR Maharashtra the party failed to prove its activity as pure agent. - Reply By KARAN VERMA - The Reply = Thank you sir, for your prompt reply and response ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In Pure agent, there is one condition to show separately on Tax invoice. We have not shown such amount separately on Tax invoice. Electricity meter is name of company ABC and ABC has installed sub meter in premises of tenant. Tenant reimburse electricity expense amount to landlord. And landlord paid such amount to state electricity board. - Reply By KASTURI SETHI - The Reply = Regarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concept of 'Pure Agent' and its parameters also see reply against Issue ID 114807 dated 28.3.19. - Reply By KARAN VERMA - The Reply = Sir Electricity bill is name of landlord, whether reimbursement of such expense from tenant fulfill the condition of pure agent when no directly bill in the name of tenant. - Reply By KASTURI SETHI - The Reply = You will have to go through the terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and conditions of the rent deed. You are intelligent and knowledgeable enough to arrive at correct decision on this issue. - Reply By YAGAY andSUN - The Reply = In this matter the concept of Pure Agent will not come into purview as electricity is being consumed by the tenant. - GST on recovery of electricity charges - Query Started By: - KARAN VERMA Dated:- 2-3-2020 Goods and Services Tax - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST - Got 10 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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