TaxTMI 
TaxTMI 
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.
rent of immovable property by society
03 Sep 2014 
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Exemption for charitable activities may not cover rental income from immovable property, making such rent taxable unless activity qualifies.
Receipts from renting immovable property by a charitable society are not covered by the charitable exemption and are prima facie liable to service tax, with building rent taxable after proportionate property tax deduction. Receipts for generator hire turn on the effective control principle: transfer of control to the bank may shift tax treatment away from service tax, while retention of control keeps the receipt taxable. (AI Summary)
Receipts from renting immovable property by a charitable society are not covered by the charitable exemption and are prima facie liable to service tax, with building rent taxable after proportionate property tax deduction. Receipts for generator hire turn on the effective control principle: transfer of control to the bank may shift tax treatment away from service tax, while retention of control keeps the receipt taxable. (AI Summary)