Service tax on Rent

[deepak kalambate]

Dear Sir,

We have given our Office Furniture to another company on Rental basis and recovering Rs.100000/- per month from them.

Pl let us know whether any Service Tax Liability occures in this case?

Pl advise.

Deepak

AI Summary

Company Faces 12.36% Service Tax on Office Furniture Rentals Under 'Supply of Tangible Goods Service' Category A company inquired about the service tax liability on renting out office furniture for Rs. 100,000 per month. One respondent suggested that service tax might not apply under 'Renting of immovable property' but could be applicable under 'Supply of Tangible Goods' due to lack of exemptions. Another respondent confirmed that the transaction is taxable at a rate of 12.36%, as it falls under the category of 'Supply of Tangible Goods Service,' which includes renting without transferring possession or control.