Service tax on rent after expiry of lease period

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shilpa gupta (Querist)
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15 December 2014 sir, i want to know that after expiry of lease period if any rental income received by dsiidc ( corporation authorised by MCD )is service tax should be paid on this ??

Amol S Joglekar

Amol S Joglekar (Expert)
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15 December 2014 yes, the service tax should be charged irrespective of the fact whether or not the AGREEMENT of lease exists

shilpa gupta

shilpa gupta (Querist)
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15 December 2014 sir , these charges are paid by oocupants as illegal occupancy charges does this damage charge come into rental income

Amol S Joglekar

Amol S Joglekar (Expert)
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15 December 2014 Please explain in details......

shilpa gupta

shilpa gupta (Querist)
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17 December 2014 i got the case frm service tax department...
that one corporation under mcd provide land on lease to industries in delhi and now there lease period is expired and corporation is receiving damage charges dapartment is levying service tax on this damage charges. my question is service tax would be levied on such damage charges ????

Amol S Joglekar

Amol S Joglekar (Expert)
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17 December 2014 From the inception of NEGATIVE list, the approach towards SERVICE taxability is changes.
Unless otherwise specifically exempt by the MEGA exemption list or otherwise, every thing under the sky can be made taxable.
Under the present case, although named by some different name like damages... the fact remains that it is nothing but the charges for OCCUPYING the premises. The character and the nature of sum undoubtedly remains the same as that of RENT....
According to me, the dept has more chances of WINNING than the assessee.
It should be taxable under service tax.

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