We are manfacturing unit registered under Excise and service tax Act. we have one more unit which is closed long back now we decided to let out the same on Rent basis. While receiving the rent we have to charged service tax to that client.
My query is that can we issue service tax Invoice to rented party from our existing registration Unit or we have to register the same unit under service tax Act.
Service Tax Invoices: Amend Existing Registration for Renting Closed Units if Ownership Matches, Otherwise Obtain Separate Registration. A manufacturing unit registered under the Excise and Service Tax Act inquired about issuing service tax invoices for renting out a closed unit. The consensus among respondents was that if the closed unit is owned by the same entity as the operational unit, and this is reflected in statutory records, the existing service tax registration can be used with a simple amendment. However, if the ownership differs or is not clearly defined, obtaining a separate registration for the closed unit is advisable. (AI Summary)
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