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TMI Blogservice tax on rentX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, If one partnership firm, given cold storage on rent to one Pvt ltd Company. The said company pays actual Electricity bill, water bill etc. of cold storage, directly to MSEB and Municipality respectively as per written agreement and pay only rent amount to Partnership firm(service provider)for using Cold storage as fixed by agreement. (Amount of rent is more than 10 Lakhs in F.Y.) I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... want to know, Is only rent amount is taxable under service tax or amount paid to MSEB water bill is also taxable or not??Kindly clarify Regards pradip.. - Reply By Rajesh Sharma - The Reply = No that amount is not taxable, only amount received by you i.e. rent from the client is taxable. and service tax will be paid on that amount only. - Reply By manju nath - The Reply = Dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Mr.Praddip, Only rent amount is taxable under service tax and MSEB AND WATER BILL is nontaxable. Even if you pay out of your pocket MSEB AND WATER BIL that will be non taxable since reimbursable expenses are not taxable under Rule 5(2) of Service Tax (determination of Value) - Reply By pradip patwardhan - The Reply = Thank You very much to both of you. - Reply By pradip patwardh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an - The Reply = Dear All, I want to know if building given on rent including electricity and water charges and received amount from service receiver including rent + electricity+water charges. then which amount is taxable for service tax only rent amount or total amount including expense kindly reply.. - Reply By MUKUND THAKKAR - The Reply = Dear, if your rent aggrement is mention that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electricity and water charges in scope of owner, In such case you have to pay the service tax on rent amount+Electricity+water charges. because lumpsum amount is including in rent and not possible to justify the amount how much amount will go for MSEB and how much go for water charges.? so as per my view please refer the rent aggrement word to word and follow the same. - Reply B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Brijesh Verma - The Reply = Dear Pradip Ji Have you checked if the cold storage satisfies the conditions mentioned u/s 66D(d) ??? - Reply By Mukesh Shah - The Reply = ONLY RENT IS LIABLE TO SERVICE TAX NOT MSEB BILL OR ANY OTHER EXPENSE BORNE BY THE LICENCEE - Reply By pradip patwardhan - The Reply = Dear Brijesh Sir Thank You for your participation. I am to inform you that cold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... storage is using for storage of goods other than agriculture produce hence benefit is not available. Hence I want to ask that if service receiver paying only rent amount to service provider (Cold storage owner) and paying directly the electricity bill and water bill to respective authority and not to service provider of cold storage (Ele bill water bill are on the name of service provider ) In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his case which amount is taxable under service tax for service provider (cold storage owner)?? Kindly reply.. Thank You. Regds, Pradip - Reply By Brijesh Verma - The Reply = Dear Pradip In such a situation section 67 of FA94 is the best enactment to judge. According to it.. only the gross amount of consideration is taxable. In your situation..the gross amount is only the rent a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s all other bills are being paid directly at actuals. - Reply By pradip patwardhan - The Reply = Dear Brijesh Sir, Thank You so much for your advice. Regds, Pradip - Reply By Ashok Jogalekar - The Reply = If entire cost storage is given on rent and is being used by the client and is paying rent to the landlord and water and electricity charges are paid by him directly then Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax would be payable on actual rent amount received. But, if it is not the case, then, it is pertinent to note that without electricity / water cold storage facility can not be operated so electricity / water is essential element of cold storage service as such service tax would be applicable on electicity and water based on the gross amount received for the service. In this case splitting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appears to be for saving or avoiding Service Tax where the receiver is not availing CREDIT. - service tax on rent - Query Started By: - pradip patwardhan Dated:- 12-11-2013 Service Tax - Got 11 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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