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

[YAGAY and SUN]

No service tax may be leviable under Renting of immovable property. But, since, there is no exemption under Negative list and under Mega Exemption Notification, therefore, service tax may be applicable under supply of Tangible goods.

[CASeetharaman KC]

This would be definitely taxable and subject to service tax @ 12.36%. In fact this was also covered in the old list of services under "Supply of Tangible Goods Service"  where any service provided or to be provided to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances was covered. 

AI Summary

Taxability of rented tangible goods: renting office furniture treated as supply of tangible goods service, therefore subject to service tax.
Renting office furniture may not fall under immovable property exemptions; if possession and effective control are not transferred, the transaction aligns with the Supply of Tangible Goods Service and is treated as a taxable service under the service tax regime.