TaxTMI 
TaxTMI 
2018 (5) TMI 1363
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....lant Shri Atul Sharma, AC ( AR ) for Respondent ORDER Per: Ramesh Nair The issue involved in the present case is that in the course of leasing of the premises of Government local authority, they keep a non-refundable deposit, which is called as one time premium of Salami, which is not refundable, whether the said deposit is liable for Service Tax under the head of renting of immovable ....
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....used the records. We find that the Revenue sought to tax the one time premium deposit, which is not refundable under the head of renting of immovable property service considering the same as rent. We find that there is a separate charge for the rent, which alone is taxable, the onetime premium charges is nonrefundable deposit, it is called as one time premium and not part of rent. Therefore, the s....
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....mium and rent observing that when the interest of the lessor is parted with for a price, the price paid is premium or salami, but the periodical payments for continuous enjoyment are in the nature of rent, the former is a Capital Income and the latter is the revenue receipt. Thus, the premium is the price paid for obtaining the lease of an immovable property. While rent, on the other hand, is the ....
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....in property from lessor to lessee, Service Tax would be chargeable only on the rent whether it is charged periodically or at a time in advance. In these appeals, in the show cause notice dated 19-3-2012 issued by the Addl. Director, DGCEI, New Delhi, Service Tax has been demanded only on the lease rent and not on the premium amount while in the subsequent show cause notice dated 17-10-2012 issued ....