Faraskhana Service to Election Commission , Service Tax

[Kishor Vishnu]

My client has provided faraskhana services as well as computers, tables, chairs, and other items required by election commission to hold the General Election of Lok Sabha 2009 on rental basis. All the items billed to Election Commission by raising bills on District Collector / Mamlatdar. Whether the decision given by Delhi and other Tribunals in case of India Trade Promotion Organisation exempting the rent paid by Election Commission during the election process does not attract the levying of service tax. Here the client has provided only movable things to the Election Commission as per their requisite orders and specified the rate of rent payable by them. Please guide in the matter. Kishor Deshpande.

Posts / Replies

[Surender Gupta]

Your issue is mixture of two things, renting of immovable property as well as renting of movable property. Further whether you are in the nature of Mandap Keeper or renting of movable property is to be examined. The case of ITPO is different and may not be applicable in your case, but final comment can be given only after examining the detailed facts and situation.