Service Tax on Immovable Property

[P S SATYA NARAYANA]

Sir,

What is the position of payment of service tax on immovable property (leasing a guest house) prior to 1st July, 2010

regards

PS Satyanarayana

[Madhukar N Hiregange]

Not liable as at that time matter was unclear.

[Mahir S]

In the Budget 2010, Govt amended it as 'Renting of Immovable Property or any service given in relation to such renting' under the said category and made it effective retrospectively from June 2007. A Circular No 334/1/2010-TRU dared 26-2-2010 was issued by CBEC in this regards.

AI Summary

Renting of immovable property: retrospective service tax liability affirmed after legislative amendment, supported by administrative circular. The taxability question centers on renting of immovable property; a 2010 legislative amendment reclassified renting (and related services) as taxable and administrative circular guidance addressed its retrospective application, resolving prior uncertainty about liability.