Renting of Precincts of a Religious Place

[Aliasgar Tambawala]

1. Querist is a “Public Religious Trust” registered with the Charity Commissioner, Maharashtra State under the provisions of The Bombay Public Trusts Act, 1950 and is also registered with the Income Tax Authorities u/s 12A of the Income Tax Act, 1961.

1. The querist was formed prior to 1961.
2. The Querist owns a building on the ground floor, 1^st Floor and 2^nd Floor of which is a masjid premises.

1. The Querist has let out its terrace premises of the above-mentioned building to Cell Tower operators on Leave and License basis for installation of temporary shelter / shed for placement of antennae and other equipments of Cellular Mobile Telecommunication System.

Queries :-

1. As per clause 5 (a) of Exemption Notification No.25/2012-ST dated 20.06.12, services by a person by way of Renting of precincts of a Religious Place meant for general public is exempt.

In this case if the Querist is earning License Fees by allowing Cell Tower Company to install their Shelter Cabinet on the terrace premises of Masjid premises (being owned by the Querist), will the same be exempt from Service Tax applicability being Renting of precincts of a Religious Place meant for general public?

AI Summary

Religious Trust Seeks Clarification on Service Tax Exemption for Renting Terrace to Cell Tower Operators Under Notification 25/2012-ST A public religious trust in Maharashtra is seeking clarification on whether renting its terrace to cell tower operators is exempt from service tax under Exemption Notification No. 25/2012-ST, which exempts renting precincts of religious places meant for the general public. One respondent argues that since the premises are used commercially, the exemption does not apply unless the rent income is below 10 lakhs annually. Another respondent references a judgment suggesting that services within religious precincts might be exempt, questioning the interpretation of commercial use. A third respondent supports the view that the exemption does not apply to telecommunications.