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Building and machinery on rent

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This query is : Resolved

KAPIL (Querist)

22 October 2010 Please confirm that any service tax applicable on above said. If yes, from which amount. I have a yearly building rent of Rs.9Lac and Machinery rent Rs.15lac

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

22 October 2010 You have not written , purpose for which building is being used and to whom it has been given. It is important for reply. On building service tax is applicable, subject to some condition.

In case machinary , pls mention whether it is movable or ammovable.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

23 October 2010 Assuming commercial purposes - The liability of rental of IP is a subject matter of dispute on the reasoning that pure rent is not a servic eat all.
You have Rs. 10 lakhs exemption for the same.

As far as machinery rent is concerned if the control and possession of the same is given to the cusomter/ client then it is subject matter of VATY and not liable to ST. If retianed then ST is applicable beyond the basic exemption of Rs. 10 lakhs subject to the conditions set out in not. 6/2005.

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