Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Tax on property to use

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2013 Any expert, Please guide me.
A pvt. ltd. co. is in a possession of immovable property (premises at a building), entered into the partnership wtih a Regd.Firm in the fin. yr, 2005-06. Just to bring in the capital they allowed the firm to use their premises. Property did not trd. to the firm. Profit or loss trd. since then accordingly to the partner by the firm till today. My queries : (1) Is there any obligation towards service tax by the firm for transfering profit to the pvt. ltd. co.? (2) Profit distributed as per ratio in agreement, trd. by the firm ... can it be considered as part and partial of rent by Service Tax Department for levy of Service Tax .? "YES" or "NO". Please explain in details with your opinion and applicable ACT.

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2013 my problem is not solved with these suggestions.
The property is given to use for becoming a partner. Why it should be considered as property is given on rental baasis and service tax etc. are leviable by the department?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now