Service tax on renting of cell phone towers
This query is : Resolved
02 July 2010
This is a company dealing with construction of cell phone tower & renting the towers to the telephone service providers.The company is charging service tax on the following-
1. Fixed Rental portion for the tower
2. Reimbursements of diesel and electricity charges from the client
The company is charging Service tax @ 10.3%. Is there an option for the company to opt for compounding or abatement scheme.
1. Fixed Rental portion for the tower
2. Reimbursements of diesel and electricity charges from the client
The company is charging Service tax @ 10.3%. Is there an option for the company to opt for compounding or abatement scheme.
Shyam Lal Naik
(Expert)
02 July 2010
The company is charging service tax under the category of "supply of tangible goods for use". There is no compound/abetment scheme under this category.
In my view, diesel & electricity charges can be claimed as exempt under pure agent basis. Needs through examination of the contract.
In my view, diesel & electricity charges can be claimed as exempt under pure agent basis. Needs through examination of the contract.
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