Service Tax on Furniture Rent
This query is : Resolved
Ravi Kiran
(Querist)
06 May 2008
Sir,
We are receiving Rent from Office and Furniture and We have a separate agreement for both We are receiving Separate Cheque for Rent on office and Furniture from F.y. 2006-2007 We are Charging Service Tax on Rent on office since it is a immovable property
Whether we have to Charge a Service Tax on Furniture for which we are receiving the rent if yes than from which year we have to pay service TAX
Please suggest
We are receiving Rent from Office and Furniture and We have a separate agreement for both We are receiving Separate Cheque for Rent on office and Furniture from F.y. 2006-2007 We are Charging Service Tax on Rent on office since it is a immovable property
Whether we have to Charge a Service Tax on Furniture for which we are receiving the rent if yes than from which year we have to pay service TAX
Please suggest
Shyam Lal Naik
(Expert)
06 May 2008
It appears that you are right in not charging service tax on furniture.
Tax on hire charges on movable properties, if vat is not applicable, is proposed to be imposed in the Finance Act'08. After the relevant notification is issued you need to charge service tax on renting of furniture also.
However, in the instant case, it appears that, VAT is applicable, as possession and control of the furniture is passed on to the tenant. In that event no service tax is applicable.
Please check, whether VAT is applicable. That is the decisive factor.
Tax on hire charges on movable properties, if vat is not applicable, is proposed to be imposed in the Finance Act'08. After the relevant notification is issued you need to charge service tax on renting of furniture also.
However, in the instant case, it appears that, VAT is applicable, as possession and control of the furniture is passed on to the tenant. In that event no service tax is applicable.
Please check, whether VAT is applicable. That is the decisive factor.
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