Rental Issue (Service tax) & booking

This query is : Resolved

Zulfiqar (Querist)
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05 December 2008 Dear Sir,

A rental agreement is made between a pvt company from 01nov 2008. in two part.

1st part states (60000) as rent on business premises inclusive of service tax. The service tax if any applicable shall be reimbursed by us.

2nd part states (40000) as rent on amenities ie- telephone, furnitures etc(exclusive of charges)

How we will book the J.V. of these expense?

Is the service tax applicable on (1) & (2) or only (1)

What is the clause in respect of service tax on rental agreement.Whether a service tax no is mandatory to be provided on agreement or agreement is enough.

Regards,

Khan

BALU V

BALU V (Expert)
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13 December 2008 Let me give my opinion on ST issues :

Both 1 & 2 are taxable. First one under RIS and the second one under Business support Services (BSS) The Ageement is between the lessor and lessee and the govt. has no say over that (About ST No.) Reg. JV entry let CAs offer their opinion