2 Mandapams in a same compound

[gowri shankar]

Dear sir,

Husband and wife are having 2 kalyana mandapams in a same compound.  Is there any service tax related disputes regarding leasing,taking salaries, or any other service tax issues may be arised

Please explain.

 

 

[CASeetharaman KC]

Leasing would be subject to service tax. Salaries would not effect the service tax aspect as service tax liability is on gross receipts, Please specify the areas in which you need any clarification

AI Summary

Service tax liability applies to leasing of event halls while employee salaries do not reduce liability measured on gross receipts. Leasing of the kalyana mandapams is subject to service tax; employee salaries do not affect service tax liability because the liability is measured on gross receipts from the service, not on net income after salary payments.