Interest Free Security Deposit on Rent

[Vivek anandhan]

We have paid Interest free security depost for our rental factory premises.  Our lessor collecting service tax for Monthly Rent. 

 Whether we have to pay service tax for Security deposit also.

Any one can explain me. 

Vivekanandhan

AI Summary

Service tax applies to non-refundable security deposits for rental premises; refundable deposits are exempt from service tax. A user inquired about the applicability of service tax on an interest-free security deposit for rental factory premises, in addition to the monthly rent where service tax is already being collected. The response clarified that if the security deposit is non-refundable, service tax would apply. Conversely, if the deposit is refundable, service tax would not be applicable.