Collecting rent for a facility? ST is applicable or not?

Save Share

This query is : Resolved

Ganesh (Querist)

07 August 2007 Hello! Members

Provided a facility for hiring to both public & private companies. Rent was collecting for that facility. For the same, Service Tax is applicable or not?
Whether applicable under which service it comes?

Give some more details, if anybody have similar experiance.

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)

11 August 2007 Dear Sir

The word 'facility' used by you needs to be more specific and direct. Yet, please check up whether the same falls under the ambit of 'Business Support Services-

Evaluation of prospective customers telemarketing, Purch Order processing, fulfilment servies, info and tracking of delivery schedules, managing distribution and logistics, customers relationship management, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services (includes providing office with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, interet and telecom facilities, pantry and security)and other transaction processing.

In addition Business auxiliary services covers vide range of 'facilities. At last renting house properties for commercial purpose is also there.

Please write your question with adequate clarity for getting more direct reply.

Ganesh

Ganesh (Querist)

12 August 2007 Dear Sir,

Facility here is some mechinery/equipment,
provided for rent. Monthly bill was issued to that. And separate items was sold relating to that mechinery/ equipment. Sale bill was separate. Both have separate orders.

Now, please clarify, will ST will apply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now