Leviability of Service Tax - Proportionate amount received as rent, Service Tax

[sunil]

p is an C&F agent of a company.Firstly,p has sub let the property to the company wherein rent is to be calculated on the basis of sale i.e 10/=Rs.on per unit sold in a monthby entering into rent agreement.reimbursement of electrical expenses will be made on actual basis.Secendly,handling/service charges are to be recieved by company on the basis of sales.i.e 12/= per unit of sale.Service tax will be leviable on what amount n why.

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[Surender Gupta]

Rent received from letting out of a property is not liable to service tax. However, in the present case it must be seen that the rent received by Mr. P is rent or it includes commission also. This is case of facts and to be decided accordingly.