TaxTMI 
TaxTMI 
Payment of Service Tax on rent recovery.
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....ayment of Service Tax on rent recovery.<br> Query (Issue) Started By: - Ashwin Garg Dated:- 11-1-2015 Last Reply Date:- 12-1-2015 Service Tax<br>Got 2 Replies<br>Service Tax<br>Sir, We are a manufacturer located in remote village and besides factory, residential colony is situated. All quaters, shops, offices, halls are constructed by company. We are recovering nominal rent as detailed below and ....
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....it is shown as miscellaneous income in P and L : a) Employees Quaters : Say ₹ 100 per month from salary b) Workers Quaters : Say ₹ 50 per month from salary c) Shops : Say Rs 1,100 per month d) Mobile Tower rent towards open space : Say Rs 4,000 per month e) Banks and ATM : Say ₹ 2,000 per month f) Transporter Office : Say ₹ 1,000 per month g) Community Hall towards f....
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....acilities provided like light, cleaning charges. Besides above we are also recovering electricity charges from above users which is supplied from our captive power plant and understand that no service tax is payable since electricity is "goods" and the charges are shown as miscellaneous income in P and L. Querry : a) on which of above activity we need to pay service tax b) under whi....
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....ch head we need to pay service tax c) whether we need to pay service tax on electricity charges recovered thanks in advance ashwin Reply By Pradeep Khatri: The Reply: Dear Ashwin, Except on activity no. a and b, you are under statutory obligation to charge service tax. Under Renting of immovable property you would charge service tax. Yes, you need to pay service tax on electricity generated ....
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....via your captive power plant. Regards Neelam Taneja,(Executive Consultant) YAGAY and SUN, (Management, Business, and Indirect Tax Consultants) Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, no need to pay service tax on any activity. The employees and others for which you are providing accommodation including electricity and other facilities and deducting an notional amount, Th....
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....e same is not in the nature of consideration under commercial activity, hence not liable for service tax.<br> Discussion Forum - Knowledge Sharing ....