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Q. > Please Help: Service tax on Rent of Factory.
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205 views • Question added Apr 05, 2014 • Service Tax • By CA Tushar Patil , CA


One of my client has taken sugar factory on rent for the use for 10 years. Whether he is liable to pay service tax on rent?

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SARTHAK JAIN

06-Apr-2014 , 12:09:20 am

Yes. I think service tax will be levied on rent paid. In the present law, only renting of residential dwellings comes under negative list. Further, it is also not an agriculture related service as mentioned u/s 66D(d) for sugar is not an agricultural produce. Therefore, it is outside the ambit of negative list. To my knowledge, there is no exemption notification in such regard as well. So, I believe that service tax will be levied on such rent and the recipient of service would be liable to pay for it. Regards

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