Service tax on rent of building along with furniture

This query is : Resolved

CA. Mahesh Agarwal (Querist)
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02 September 2008 Whether service tax is payable on rent of immovable property which includes rent of furniture and fixture also.
Whether service tax is payable only on rent of building and how to segregate.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 September 2008 As per clause(90a) of section 65 of the act renting of immovable property includes renting,letting,leasing,licensing or other similar arrangements of immovable property....In view of the said defination rent of furniture is not assessable under service tax.
For the purpose of segregation a supplementary rent aggrement need to be executed by specifying the segregation.Otherwise department may take a view that gross receipts is taxable for want of segregation.