Service tax Payable if property leased out against a Lumsum

karthik (Manager Documentation) (46 Points)

12 March 2009  

I have a doubt as how to calculate the service tax on the below issue.

We intend to leaseout our property for commercial purposes against a re-fundable deposit amount of rs.5.00 Crore.

I will not be getting any monthly rent out of the above deal.

The lease period would be for 5 years and at the expiry of the 5 years i will have to return the entire Rs.5.00 crore back to the clinet.

In the above, case how to arrive on the quantum of service tax payable

Pls clarify

Regards

Karthik