Rent on factory land & building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 Respected sir,

One of the my client had given factory land and building on Rent @ 150000/- per month. i want to know this transaction covered under service tax provision or not. if not, please suggest with justifications.

thanking you.

Vivek Raju P

Vivek Raju P (Expert)
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31 December 2010 Yes service tax is applicable as this falls under Sec 65(105)(zzzz). As this is used for a commercial activity being a factory and building. Service tax is applicable on the gross amount of rent paid.

However as you are using this for your business CENVAT credit can be claimed as per CENVAT credit rules.