Service tax on locker rent

Good News my friend,

There are two points to be noted

1. no service tax is liable on the locker rent as per point 6.6.2.3, hiring of locker does not amount to transfer of right to use; hence should not be taxable under this category. but since the scope has been wider; this point may not be effective enough to non-taxability.

2. service tax can not be demanded on which the point of taxation has been determined to be prior to 01.07.2012. Since, you paid the amount much in advance, the point of taxation was the time of payment and not the provision of service. - as per point no.10.1.7 of the Education Guide issued by CBEC easily downloadable from www.cbec.gov.in under Service tax section.

You should point out the second point to your defence.

Hope your problem gets resolved.