Service Tax Liability for electricity supply on Builder, Service Tax

[Ashwani Rustagi]

Builder or Coloniser is purchasing power in bulk from Dakshin Haryana Bijli Vitran Nigam and distributing the same to the residents of his colony by installing separate meter in each flat. Builder is collecting electricity charges from the residents by adding his administrative charges separately in the invoice.

Can a builder charge servcie tax on electricity charges? If yes, would it on entire amount of electricity invoice or only on his administrative charges?

Your advice is solicted with reference to any notification.

Regards,

Ashwani Rustagi 

Posts / Replies

[Pradeep Khatri]

Service Tax may be charged on his administrative charges.