26 January 2012
Dear Sirs, One of clients has given his factory on rent on a composite rent. There is no seperation of the rent for machinery, furniture and fixtures, land and factory building and labour quarters. My query is how the rent should be segregated, that for movable properties and for immovable properties? Please advise me how the service tax will be payable and how the Maharashtra Value added tax will be applicable. Thanks! Regards, D.R.Phirake, C.A.
27 January 2012
In case of composite agreement, the issue wouldbe difficult toresolve. A exchange ofletters splitting thesame and subjecting the movables to VAT and Immovable to ST could be a solution.
CAclubindia
