Tax on rent of Immovable property


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Querist : Anonymous

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Querist : Anonymous (Querist)
31 May 2011 Sir,
I am the owner of a building which is having some flats and a common kitchen / Canteen.

i have leased out the flats to one company for residential purpose through one contract and to the same company the Kitchen / Canteen through other contract specially to use the same by the resident of the same building and not for any other purpose.

Now Department is asking to pay the Service Tax on kitchen / Canteen part calming it is for Commercial purpose.
ie also from the year 2007.

Kindly suggest me what to do ? , also requesting you to provide any caselaw on the subject matter on my email ID : rosesrunique@gmail.com

Regards


31 May 2011 ask your tenant to issue certificate to the effect that canteen is not used for commercial but for personal use.

Perhaps the company has raised bills for their staff foods, and that is making litigation to the issue,

if the company has accounted the foods of said canteen and issued vouchers / coupans to their staff, and accounted the same in their books, then it will lead commercial transaction and service tax will get imposed on it.




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