Service tax on hoarding

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2012

Hi,

IF ASSESSEE IS TRUST AND GIVING ITS HOARDING ON RENT TO ADVERTISING AGENCY WHO IN TURN CHARGE SERVICE TAX TO THEIR CUSTOMER AND DISPLAY ADVERTISEMENT FOR THEIR CLIENT.
IN THIS CASE WHETHER TRUST IS LIABLE TO PAY SERVICE TAX IF YES UNDER WHICH CATEGORY AND FROM WHICH DATE? IF NO THEN GIVE REASONING FOR THE SAME.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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07 April 2012 trust will be liable for service tax if the amount exceeds 10 lakhs in year.
It would be treated as rent for trust and the ad agency will deduct the tds u/s 194I.
Accordingly, It would be liable for service tax under renting of immovable property and not as advertising agency service.