Ranting of Immovable Property

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NiTiN1504 (Querist)

14 April 2009 Assessee is a company & receive a rent from Let out Building which includes rent of furniture.
plz solve my query in following case from Service Tax Act point of view:

1. Rent is composit...means there is no segregation between rant of building & rent of furniture.?

2. Segregation is possible but no separate agreement for rent of furniture.?

3. Separate agreement is there.?

Shyam Lal Naik

Shyam Lal Naik (Expert)

14 April 2009 Taxable services are to be classified on the basis of the main intention of the parties. Here, renting of the premises is the main intention, renting of furniture is merely a better enjoyment of the principal service.

Further, classification principle is independent of method of billing. The substance should prevail over form.

In my view, the entire transaction is covered under Renting of immovable property service.

Matter being judicial in nature, should seek more opinion.

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