Faraskhana Service to Election Commission

[Kishor Deshpande]

My client has provided faraskhana services as well as computers, tables, chairs, and other items required by election commission to hold the General Election of Lok Sabha 2009 on rental basis. All the items billed to Election Commission by raising bills on District Collector / Mamlatdar. Whether the decision given by Delhi and other Tribunals in case of India Trade Promotion Organisation exempting the rent paid by Election Commission during the election process does not attract the levying of service tax. Here the client has provided only movable things to the Election Commission as per their requisite orders and specified the rate of rent payable by them. Please guide in the matter. Kishor Deshpande.

[Surender Gupta]

Your issue is mixture of two things, renting of immovable property as well as renting of movable property. Further whether you are in the nature of Mandap Keeper or renting of movable property is to be examined. The case of ITPO is different and may not be applicable in your case, but final comment can be given only after examining the detailed facts and situation.

AI Summary

Renting of movable property: service tax applicability hinges on factual classification and may differ from precedent.
Whether supplying furniture, computers and other movable items on rent to the election authority is taxable under service tax depends on classifying the supply as renting of movable property or another taxable service (for example mandap keeper). The ITPO tribunal precedent is fact-specific and may not control; a definitive view requires examination of the factual matrix, contracts and invoicing arrangements to determine the legal character of the transaction and any exemption claims.