22 December 2012
A private limited company constructed a shopping mall and installed various equipments and machinery like generator, escalator, lifts, etc.
The company will be required to replace them after say 5-6 years.
The company intends to receive certain amount from the parties on monthly / quarterly basis to whom the shops are sold so that sufficient funds are available with the company at the end of 5-6 years for replacement of equipments and machinery.
Whether such receipt is covered under service tax.
It is taxable under the head renting of immovable property.
Read the following : "renting" means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property;65B(41)
CAclubindia
