Service Tax applicability of surrender of Tenancy Rights

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..... Service Tax applicability of surrender of Tenancy Rights
Query (Issue) Started By: - Mukesh Panchal Dated:- 17-12-2015 Last Reply Date:- 27-12-2015 Service Tax
Got 6 Replies
Service Tax
We have received consideration from landlord for surrender of tenancy Rights. Whether service Tax is applicable on this amount under section 66E? Reply By KASTURI SETHI: The Reply: Yes. Your activity .....

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..... is covered under Section 66 (E) (e) of the Finance Act. It is a declared service. Service Tax is applicable. Reply By Mukesh Panchal: The Reply: there is no kind of service has been provided in surrender of tenanacy Rights. Actually it is a sale of property which is not on ownership basis. We have even paid Capital Gain tax on it, then how Service Tax is applicable under Section 66E (e) under d .....

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..... eclared services? Actually it is read as agreeing to the obligation to refrain from an act, or to tolerate on act or situation, or to do an act. here we are not in obligation to refrain from any action nor we are getting any consideration to tolerate an act or to do an act. so there is no kind of service has been provided and so should not attract any service tax. Please clerify Reply By Gane .....

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..... shan Kalyani: The Reply: I am sure the queriest is well aware of the answer. Hence the query is deemed to be answered. This is what is opine. Reply By KASTURI SETHI: The Reply: Yes Sir. He was well aware of the answer but he needed confirmation from us before taking final decision. Reply By Ganeshan Kalyani: The Reply: Agreed with you Sir. I will try to answer the query. Please correct me if am .....

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..... wrong. In my view, by giving up tenancy right he is actually refraining from the right of enjoying the accessibility of the residence, premises... And giving up right would mean he cannot again enjoy the right to give the tenancy right to someone else. Thus it would be covered by the definition and would attract service tax. Reply By Ganeshan Kalyani: The Reply: Hope the query is resolved.
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