Service tax on factory rent

This query is : Resolved

Lokesh BV (Querist)
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05 September 2012 Dear Sir,

We are in to Manufacture of components and paying Factroy rent as well office Rent of Rs 38,00,000/- p,a presently our lessor is not charging Service TAX i want to know whether Rent also come under Service tax ambit, if he charge can we eligible to take credit.

suppose if lessor is not Register under service Tax whether we need to pay ST on behalf of Lessor.
Please clarify the above issues.

Regards,

Lokesh BV

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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11 September 2012 Renting is a declared service u/s 66E of the Finance Act 1994 and thus taxable. Renting is however not covered under the reverse charge mechanism and hence no liability to pay service tax by you as service recipient arise.