06 September 2013
We are manufacturer of heavy equipment. We had given on rent some of the shed which had built with a objective of vendor development so that he can manufacturer their product as per our requirement and sell it to us exclusively. whether the rent what charging on him is coming under Service tax net or not. if applicable @ what please advice
06 September 2013
Charging the rent from the vendor whom you have given the place within your manufacturing unit is not necessary, it shall create a tenancy right in favour of your vendor. It is worth reconsideration.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
CAclubindia
