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SERVICE TAX ON RENTING OF IMMOVABLE PROPERTIES

Service Tax - Started By: - abbas mukhi - Dated:- 9-12-2015 Last Replied Date:- 25-4-2016 - SIR,OUR ORGANIZATION IS PROVIDING LAND ON RENT (SOMETIMES RENT ARE NOMINAL OR FAR BELOW MARKET RENT) FOR UNDER MENTIONED PURPOSES.1. RELIGIOUS PURPOSE2. FOR SCHOOLS3. HOSPITALS4. PUBLIC GARDEN ETC.5. SOCIAL AND CULTURAL ACTIVITIES6. VARIOUS FARES AND EXHIBITION FOR SHORT TERM PERIOD7. TO GOVERNMENT FOR VARIOUS PURPOSE8. RESIDENTIAL PURPOSE9. COMMERCIAL PURPOSESTATUS OF OUR ORGANIZATION IS AUTONOMOUS BODY/ .....

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orm service tax and the same for renting for Social and Cultural activities and Exhibitions.Renting of property by government for non business activity is not chargeable to tax but Renting of property to government is not in negative list.Property given on rent for residential purpose is not chargeable to tax, but residential property given for commercial purpose is chargeable to tax and Renting for Commercial purpose is chargeable to tax. - Reply By KASTURI SETHI - The Reply = Dear Sh.Abbas Muk .....

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ential purpose Exempted Negative List (If residential used for business then taxable) 9. Commercial purpose Taxable I have made all-out efforts to give updated information. I also expect views of other experts. - Reply By KASTURI SETHI - The Reply = With reference to my reply dated 12.12.2015, I add that religious fairs like Maghi Mela, Diwali Mela, Holi Mela etc. are exempted from Service Tax but other fairs like Book Fair, Tech. Fair, Job Fair etc. are taxable. - Reply By abbas mukhi - The Rep .....

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ether it is taxable under the same taxable category or is not taxable. Please discuss. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani ji, Sir, chairs, furniture, tube lights etc. are not immovable property. Hence out of definition this service. I think so. What is your response on this aspect ? - Reply By Ganeshan Kalyani - The Reply = Though furniture is not immovable property the rent charged by the service provider includes the charges of using the amenities like furniture, air co .....

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e levied. Thus in my opinion if service provider does an agreement separately for rent and amenities then service tax and VAT will be levied. And if does one agreement for both rent and amenities together then only service tax is leviable as there is no value rule to segregate the consideration into rent amount and charges for amenities. This is my views. I expect to share your views as well. - Reply By KASTURI SETHI - The Reply = Sir, I subscribe to your views entirely but I would like to expre .....

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t received. If the assessee is able to provide separate figures(consideration) for office building and furniture, A.C.,fans etc., rent received on account of these goods/items is not liable to Service Tax. The whole scenario revolves around 'Segregation'. Practically, the department accepts the payment of VAT as documentary evidence to the effect that it is a sale and not service. If VAT is paid, it is not service. If the VAT department charges VAT on deemed sale, Service Tax shall not b .....

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uilding on Rent and it is the impression at the time of Finalisation of Rent deed that Rent includes everything but subject to deduction of TDS.Further the Landlord has not yet Raised and claimed the Service Tax from Tenant since the starting of Lease Agreement .Kindly give your views wheather Tenant is Compulsory Liable for Payment of Service Tax to Landlord or It is the Landlord who is responsible to Pay Service Tax from the amount of Rent received by him. Kindly also mention Circular no. if a .....

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located and thus if SP is located outside the taxable territory, SR is located in taxable territory, ST shall be paid by the recipient of service in that situation. Service Tax is to be paid on the amount of TDS. TDS is a component of gross receipt. Landlord cannot execute rent deed/lease deed in violation of Service Tax law. I mean to say landlord cannot shift his liability upon the tenant by way of agreement. It appears that landlord (SP) and Tenant (SR) both are in taxable territory. So you ( .....

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Deed is silent on service tax matter and if ( SP ) files the Civil suit for recovery of Service Tax from ( SR ) what are the chances in favour of ( SR ).Whether there is/are any Court decision ( s ) in this respect. Thanks once again,Atul Gupta - Reply By Ganeshan Kalyani - The Reply = Sir, this is totally depends upon the terms and conditions of the Agreement about Service Tax liability and the Consideration clause. If the consideration as mentioned in the agreement is all inclusive then the S .....

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