14 April 2009
Assessee is a company & receive a rent from Let out Building which includes rent of furniture. plz solve my query in following case from Service Tax Act point of view:
1. Rent is composit...means there is no segregation between rant of building & rent of furniture.?
2. Segregation is possible but no separate agreement for rent of furniture.?
15 April 2009
Section 65A sets out that where there is no bifurcation the principal activity would be considered as the activity and subsidiary activities would not be considered. Therefore it makes sense to bifurcate the Immovable and movable parts of the agreement. Further the renting of furniture/ movables would be liable for local VAT which maybe considered.
CAclubindia
