Service tax applicable or not ??

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Can mandap keeper charge service tax @ 12.36% on any religious trust for giving furniture and electrical items on rent ?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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07 November 2014 The two services are not different. Mandap Keeper service is giving the premises on hire for various functions. If any functions are held in the mandap premises, then additional charges on furniture, electricity, etc. incurred for the rendering of the premises is part of mandap keeper services. If the furniture and electric items are let out on rent outside the premises of the mandap keeper - then the service rendered is "Supply of Tangible Goods Services". The rate of service tax is same for both the services. As far as the assessee is concerned he is liable to collect the service tax on giving furniture and electrical items on rent. If the furniture and electrical items are given on rent outside the premises of the mandap keeper, then it would be advisable to take registration for "Supply of Tangible Goods Services", otherwise the tax can be collected and paid under the head "Mandap Keeper Services"

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Mandap keeper is registerrd under service tax act. So Do he has to collect Service even if customer is a religious trust...??? Assesse has given items outside his premises...kindly guide again...thanks

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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08 November 2014 There are some exemptions for services received by Public Charitable Trusts - but no separate exemptions religious trusts. Since the items are let out on hire outside the premises, the mandap keeper should register himself under "Supply of Tangible Goods Services". He is liable for payment of ST on furniture and equipmens let out on hire.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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08 November 2014 Do mandap keeper has to apply seperate registration for supply of tangible goods service ?? And collect service tax from religious trust...???