TaxTMI 
TaxTMI 
SERVICE TAX ON RENTING OF IMMOVABLE PROPERTY BY CENTRAL GOVERNMENT DEPARTMENT
27 Jul 2014 
1 Reply 
1899 Views Asked by
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. (AI Summary)
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. (AI Summary)
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