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Is service tax applicable on rent and license fees & wht are the amendments as per Service tax 2007 affecting? |
Any specific amendment affecting Service tax on rent with respect to the service tax 2007. Service Tax on Commercial Renting, Service has come into force with effect from 1st June 2007 vide Notification No 23/2007-Service Tax dated 22nd May 2007. However, Property Tax amount has been exempted while calculating service tax on commercial renting vide Service Tax Notification No. 24. Further, those landlords whose rent receipts are below Rs 8 Lakh from 1st June 2007 to 31st March 2008 will also be exempt from service tax vide Notification No. 6/2005-Service Tax as amended by Notification No.4/2007-Service Tax subject to the conditions of Notification. Even those whose rental receipts are above Rs 8 lakh will be required to pay service tax only after crossing receipts of Rs 8 Lakh. The scope of 鈥渞enting of immovable property鈥?under the Finance Act 1994 as amended by the Finance act 2007 ; includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include- (i) renting of immovable property by a religious body or to a religious body; or (ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre; The term鈥渇or use in the course or furtherance of business or commerce鈥?includes use of immovable property as factories, office buildings,warehouses, theatres, exhibition halls and multiple-use buildings "taxable service" means any service provided or to be provided to any person, by any other person in relation to renting of immovable property for use in the course or furtherance of business or commerce. 鈥渋mmovable property鈥?includes鈥?br /> (i) building and part of a building, and the land appurtenant thereto; (ii) land incidental to the use of such building or part of a building; (iii) the common or shared areas and facilities relating thereto; and (iv) in case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex or estate, but does not include- (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land, whether or not having facilities clearly incidental to the use of such vacant land; (c) land used for educational, sports, circus, entertainment and parking purposes; and (d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. An immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce(Vide Finance Act 2007) http://allindiantaxes.com/ait-news-95.ph... Source(s): www.allindiantaxes.com |
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