letting out of plant & machinery

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ravi agarwal (Querist)
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24 January 2008 proprietorship concern lets out plant & machinery of worth Rs. 20 Lacs to a company, what is the provisions of service tax?

R.V.RAO

R.V.RAO (Expert)
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24 January 2008
AS REGARDS LETTING OF AN IMMOVABLE PROPERTY ,THE PROVISIONS OF SERVICE TAX ARE AS FOLLOWS.

[(90a) “renting of immovable property” includes renting, letting, leasing, licensing or other

similar arrangements of immovable property for use in the course or furtherance of

business or commerce but does not include —

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre;

Explanation.—For the purposes of this clause, “for use in the course or furtherance of

business or commerce” includes use of immovable property as factories, office buildings,

SOURCE:WWW.SERVICE TAX.GOV.IN

BUT IF WE PROVE PLANT AND MACHINERY IS MOVABLE AND NOT EMBEDDED TO THE EARTH, THE PROVISION DOES NOT APPLY.
R.V.RAO

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