Service Tax on Rent

shail (accountant) (113 Points)
Replied 18 October 2008

Is TDS be deducted only on rent amount or on total amount including servic tax?Is there any circular, notification ,judjment related to it?

S. Banerjee (Practising Cost Accountant. Core area- Central Excise. Service Tax Costing system installation including maintenance of Cost Records and Cost Audit and Management Audit mainly Revenue leakages Audit) (622 Points)
Replied 18 October 2008

Whether Service Tax is applicable on Sub-let under "Renting on Immovable Property"?

S. Banerjee

OFFICESELVA (Service) (515 Points)
Replied 19 October 2008

Yes.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 20 October 2008

Originally posted by :D.Durga Prasad
"	Dear Sir, Can you Explain about service tax: We paid a Rent for Business unit (Software Business and Medical transcrption). For this rent whether we need to pay service tax or the land lord shouls pay service tax. can you give me related website or notification for this Thanks Prasad	"

As far as renting of immovable property is concerned the service provider is liable. The landlord has to pay provided his total taxable income does not cross Rs.10 Lakhs.

There is a stay of recovery of this but not stay of levy. It is advisable that the landlord pays the same under protest.

If landlord does not charge you as reciver has no liability,

(Guest)

I am transport contractor having service tax registration no. I am collecting Service Tax under catogery-Goods Transport Agency and I also renting my garage space for Rs.2,40,000/- p.a. to xyz , will it attract service tax and separte ST.Regn.No. required.

Pls answer

lingam (Manager-Accounts) (121 Points)
Replied 17 November 2008

I am transport contract having ST Regn.No. under category GTA, and I am renting my garage space to XYZ for Rs.240000/-p.a. will it attract Service Tax @ 12.36% and require separate ST Regn.No.

Pls answer

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
Replied 18 November 2008

Originally posted by :Guest

"

I am transport contractor having service tax registration no. I am collecting Service Tax under catogery-Goods Transport Agency and I also renting my garage space for Rs.2,40,000/- p.a. to xyz , will it attract service tax and separte ST.Regn.No. required.
Pls answer

From your query it appears that you are providing primarily GTA service and also renting out your garage space which is covered under Renting of Immovable Property Service which has become taxable since June 2007 would attract service tax. You need to include this service in your existing ST-2 Certificate.

"

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
Replied 18 November 2008

Originally posted by :Guest
"	I am transport contractor having service tax registration no. I am collecting Service Tax under catogery-Goods Transport Agency and I also renting my garage space for Rs.2,40,000/- p.a. to xyz , will it attract service tax and separte ST.Regn.No. required. Pls answer	"

SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
Replied 18 November 2008

Originally posted by :Guest

"

I am transport contractor having service tax registration no. I am collecting Service Tax under catogery-Goods Transport Agency and I also renting my garage space for Rs.2,40,000/- p.a. to xyz , will it attract service tax and separte ST.Regn.No. required.
Pls answer

Yes renting of your garage space would attract service tax under Renting of Immovable Property Service w.e.f 01.06.2007 . You need to apply for inclusion of the new service in your existing registration.

"

Zagade Navnath R. (accountant) (22 Points)
Replied 14 July 2009

Sir,

In future i have purchase new pc 200 L& T Exacavotor machine for construction work purpose. in this matter i want some information the service tax applicable or not applicable. if applicable whose paid ?

OFFICESELVA (Service) (515 Points)
Replied 18 July 2009

If you are purchasing machine, the question of service tax liability does not arise.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 19 July 2009

Originally posted by :D.Durga Prasad
"	Dear Sir, Can you Explain about service tax: We paid a Rent for Business unit (Software Business and Medical transcrption). For this rent whether we need to pay service tax or the land lord shouls pay service tax. can you give me related website or notification for this Thanks Prasad	"

As on date the matter is before the supreme court. It is expcted to be in favour of the tax payer on the ground that there is no value add in rental service and that only services in relation to rent are liable.

Do not pay and provide an undertaking considering that the matter is against the revenue as on date.

AK.Mohan Raj Bharathi (CA in Practice as a Proprietor) (43 Points)
Replied 20 November 2012

My client (Private Limited) likes to lease vacant land to public limited company for a rent provided later should undertake construction work in the said land for the long term lease.

My query is whether this transaction will come under the service tax - rented on immovable properties. Further the rent is only 75000 p.m., if service tax applicable owner can avail the benefit of small service provider shield?. Clarify