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2016 (4) TMI 1173 - HC - Service TaxAllotment of land on lease basis - setting up an establishment for manufacturing IMFL, Winery and a Mini Brewery Unit - whether the transaction is amenable to service tax and the same has to be paid? - Held that: - A perusal of Section 65(90a) and Section 65(105)(zzzz) of the Finance Act, 1994 as quoted in the letter dated 23-11-2015 clearly shows that “Renting of Immovable Property Service” includes renting, letting, leasing, licensing or other similar arrangements amounts to providing service and under Section 65(105)(zzzz) it is a taxable service. What is taxable is the consideration for the transfer. Even if premium is charged that is like charging of one time rent and then rebate is given for the yearly rent to be paid. Premium is also part of the lease money. Therefore, the entire transaction both premium and rent are amenable to service tax and service tax will have to be paid on the same. Petition dismissed - decided against petitioner.
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