Service tax

Hello, What u have as a Rent agreement, is not a actual expense that u are incurring. It's a utility you're using on for a rent. Therefore, the said activity shall b considered as Renting of utility. Scenario would change if u pay the bill on your own and pay the difference amount to lessor. In this case service tax shall be paid only on the rent amount and not the gross. Above suggestion is without any prejudice and subject. agreement you've entered.

Dear Sir

 

The para of rent agreement as follows:

"Whereas the first party has agree to provide complete power backup/generator set for the Second party eighter by outsourcing the job or make adequate arrangements and provide the same to second party @ 12/ per unit basis for which this hiring agreement has been signed between the first party and the second party"

On the basis of above agreement the landlord charged 12/- per unit. + service tax. Pls help : service tax is applicable or not.

 

Yes service tax will be applicable.