9911796707
TMI BlogRenting of Precincts of a Religious PlaceX X X X Extracts X X X X X X X X Extracts X X X X ..... Renting of Precincts of a Religious Place X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 12A of the Income Tax Act, 1961. * The querist was formed prior to 1961. * The Querist owns a building on the ground floor, 1st Floor and 2nd Floor of which is a masjid premises. * The Querist has let out its terrace premises of the above-mentioned building to Cell Tower operators on Leave and License basis for installation of temporary shelter / shed for placement of antennae and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipments of Cellular Mobile Telecommunication System. Queries :- * As per clause 5 (a) of Exemption Notification No.25/2012-ST dated 20.06.12, services by a person by way of Renting of precincts of a Religious Place meant for general public is exempt. In this case if the Querist is earning License Fees by allowing Cell Tower Company to install their Shelter Cabinet on the terrace premises o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Masjid premises (being owned by the Querist), will the same be exempt from Service Tax applicability being Renting of precincts of a Religious Place meant for general public? Reply By Naveed S: The Reply: Sir, As per your query you are using the building premises for commercial services and not for religious purpose used by general public, hence this exemption is not available, However exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion from service tax is available if such rent income is less than ₹ 10 lacs p.a. Reply By Aliasgar Tambawala: The Reply: Dear Mr. Naveed, Thanks for your reply. However, As per clause 5(a) of Exemption Notification No.25/2012-ST dated 20.06.12 - "Renting of precincts of a religious place meant for general public" is exempt. It does not talk about religious or commercial purpose. Else ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what would be the difference between clause 4 and clause 5(a) of Exemption Notification No.25/2012-ST dated 20.06.12? Refer the under-mentioned judgement: "Service Tax - 2010 - TMI - 75383 - Tri Benefit of Exemption Notification No. 14/2003 - Mandap keeper service - Their only contention of revenue is that marriage hall is not within the temple premise, but it is in the temple's property, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which they relied upon the dictionary meaning of "precinct". - Commissioner (Appeals) in impugned order has come to a conclusion that marriage hall is within the precincts of the temple. - we find from the photographs that the entire temple complex and marriage hall is enclosed by a boundary wall to indicate that entire property is within the temple premises of the trust - On perusal of Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No.14/2003, we find that the said notification exempted the taxable services provided by a Mandap keeper for the use of the precincts of a religious place as Mandap, from the service tax leviable there on. In our view, the services provided by the respondent, before us, will clearly get the benefit of Notification No.14/2003, for the simple reason that the marriage hall is within the precincts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a religious place i.e. temple." The jist of the above judgement talks about "taxable service" provided by a Mandap Keeper, so can it be interpreted to mean that commercial / taxable services rendered from the precincts of a religious place would be covered by the exemption provided by clause 5(a) of Exemption Notification No.25/2012-ST dated 20.06.12? Kindly provide your valuable comments in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of the above arguement.
Reply By MUKUND THAKKAR:
The Reply:
Sir,
Mr. Naveed is right.
you have chance to presenting your view as and when dept. will issuing any show cause notice. because Tele communication is not nexus with your religious activity. X X X X Extracts X X X X X X X X Extracts X X X X
|
