Renting of immovable property, Service Tax

[asap audit]

As per a renting agreement entered into in 2006, a token amount is fixed as monthly rent for the next 25 yrs while a security for a huge amount has been taken. No service tax was prososed as the same was not applicable at that time.

The query is what would be the gross value for service tax. Whether the Service Tax determination Rules would be attracted, keeping in view that no other consideration is being received in kind or otherwise. 

Posts / Replies

[Brijesh Verma]

Dear ASAP AUDIT

Your query doesnt specify the nature of the deposit.... if the same can be proved as a refundable deposit then I am sure Valuation Rules dont apply.... In the other case my answer would vary!!!