SERVICE TAX ON RENTING OF IMMOVABLE PROPERTY BY CENTRAL GOVERNMENT DEPARTMENT

[VINOD KUMAR]

PLEASE REPLY WHETHER SERVICE TAX IS PAYABLE TO A SERVICE PROVIDER BY A CENTRAL GOVERNMENT DEPARTMENT WHO HAS TAKEN A BUILDING ON LEASE FOR OFFICE AND THE NET MONTHLY RENT IS Rs. 1 LAC. AN EARLY REPLY IS REQUESTED

[Akash Deep]

Dear Vinod Ji,

service tax shall be payable by the central government department, because such transaction is not covered either under negative list of services not under Notification no. 25/2012 dated 20.6.2012.

Akash Deep

AI Summary

Central Government Department Must Pay Service Tax on Leased Office Building; Not Exempt Under Notification No. 25/2012. A query was raised regarding whether a central government department must pay service tax on a leased building used as an office, with a monthly rent of Rs. 1 lakh. The response clarified that the department is required to pay the service tax, as this transaction is not exempt under the negative list of services or Notification No. 25/2012 dated 20.6.2012.