Renting of industrial shed

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Aparup sinha (Querist)
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06 September 2013 We are manufacturer of heavy equipment. We had given on rent some of the shed which had built with a objective of vendor development so that he can manufacturer their product as per our requirement and sell it to us exclusively. whether the rent what charging on him is coming under Service tax net or not. if applicable @ what please advice

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 September 2013 it will be covered under renting of immovable .

RENGARAJ R.K

RENGARAJ R.K (Expert)
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06 September 2013 Renting of immovable property is attracting service tax.

The condition is :
1) It is for the purpose of commercial activities

2) The total rental income crosses Rs.10 lacs in a year.

The rate of service tax is 12.36%.

CA Suresh Jain

CA Suresh Jain (Expert)
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06 September 2013 Charging the rent from the vendor whom you have given the place within your manufacturing unit is not necessary, it shall create a tenancy right in favour of your vendor. It is worth reconsideration.

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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