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

Service tax liability on government leases confirmed; renting department must pay tax despite claimed notification exemptions.
Leases of immovable property taken by a Central Government department for office use are not covered by the negative list or by the cited exemption notification; therefore the renting of immovable property remains a taxable service and the departmental lessee must account for service tax in the absence of a statutory exemption.