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is service tax applicable on rent present? - Service Tax

Issue Id: - 2667
Dated: 20-1-2011
By:- chaganti srinivas
is service tax applicable on rent present?

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Dear Sirs, i have one doubt i.e., is service tax applicable on rent present? is there any exemption of service tax on rent? pls. give your valuable replies on this issues. thanks to all advance.---__--- BENARJEE GOVADA

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Dated: 21-1-2011
By:- Sandeep Chaudhari

Dear Sir,

Yes. ST is applicable on Rent under the ST heading "Renting of immovable property services". As per definition provide in Section 65 (105)(zzzz) it is applicable only on renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce.

Exemption to this is as follows,

Service tax is payable on the rental amount received less the actual amount of property tax paid to the local authority.---By Notification no. 24/2007.

Dated: 13-2-2011
By:- Seetharaman K C

Service tax is applicable on rent provided the property is used for furtherence of business or commerce. There was some doubts cast by the judgemnts in Delhi High Court - Home Solutions case but there are subsequent decisions confirming the applicability of the tax  and so it is definitely safer to pay

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