rent of immovable property by society

[satbir singhwahi]

A charitable religious society registered with Income tax . Has given premises on rent to Bank . Bank is Paying Monthly building rent of ₹ 73000 pm and Generator Rent of ₹ 20000 pm . Total Annual Rs 1116000. Whether liable for service tax.

AI Summary

Charitable Society's Rental Income Debate: Is It Taxable or Exempt Under Notification No. 25/2012? A charitable religious society, registered with the Income Tax department, rented premises to a bank, receiving monthly rents of 73,000 for the building and 20,000 for a generator, totaling 1,116,000 annually. The discussion revolves around whether this income is subject to service tax. One opinion suggests exemption if the society's activities align with 'charitable activities' under notification no. 25/2012. However, others argue the income is not from charitable activities and is thus taxable, with the building rent subject to service tax and the generator rent depending on control transfer to the bank.