Service tax on immovable property related

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This query is : Resolved

yashsr (Querist)

06 November 2014 A Public Limited Company wants to give on lease some Machinery along with Factory Building to its Sister Concer. What will be the implication under Service Tax in the following 3 scenarios:

1. The agreement for renting of Factory building and plant & Machinery is made in a single agreement.

2. The agreement for leasing of Building and plant Machinery is made separately.

3. The agreement for leasing is only entered for Building but in reality Plant and Machinery is also given on lease

Note: A separate debit note for Electricity and other ancillary costs will also be raised apart from the agreement monthly value.

Amol S Joglekar

Amol S Joglekar (Expert)

06 November 2014 why confusion? Every thing is exigible to service tax

yashsr

yashsr (Querist)

06 November 2014 Thanks! Even the separate debit notes for Electricity and other ancillary costs?

Amol S Joglekar

Amol S Joglekar (Expert)

06 November 2014 electricity can be argued to be the "actual consumption basis" by the sister concern and hence out of purview of service tax. For ancilliary cost, the same logic be applied, else it will be exigible to service tax

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