service tax on Rent

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Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 what is the logic to levie service tax on rent please eleborate and what is the current service tax rate.

DEEP SINGH TOMAR

DEEP SINGH TOMAR (Expert)
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24 June 2011 Hello Friends

There is law of economics, the reward of every factor of production of goods and services.
The Main Factors of Production and Its reward :-

Capital-Interest
Employer-Profit
Labour-Wages
Land-Rent ( Lagan)

The land is the one out of the factors of production, rent is related to this factor of production.

The service tax rate is @ 10.3%

Thanx

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 Hellow sir,
As per your answer of my question; if it is so then service tax should be levied on interest also, can u suggest some logical answer in this regard.
Thanks

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