Interesting service tax issues - 1

Here is an interesting service tax issue from a friend.

Mail me your views on it to mail id: ableindiaemail@yahoo.com

Dear Members,

Need clarification: -

1. Whether there is service tax on Lease Premium paid on leasehold rights on land. If yes then can anyone provide me the provisions on the same. and if no then is there any case reference or provision on the same.

2. Whether we can claim depreciation, by capitalizing the lease premium , during the period of leasehold rights.

As per my view

1. There should not be any service tax on lease premium.

2. Further we can claim depreciation on lease premium during the continuity of leasehold rights.

Your view on the above matter is highly solicited as It's a bit urgent..

Thanking You

With Regards

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