SERVICE TAX ON RENTING OF IMMOVABLE PROPERTIES

[abbas mukhi]

SIR,

OUR ORGANIZATION IS PROVIDING LAND ON RENT (SOMETIMES RENT ARE NOMINAL OR FAR BELOW MARKET RENT) FOR UNDER MENTIONED PURPOSES.

1. RELIGIOUS PURPOSE

2. FOR SCHOOLS

3. HOSPITALS

4. PUBLIC GARDEN ETC.

5. SOCIAL AND CULTURAL ACTIVITIES

6. VARIOUS FARES AND EXHIBITION FOR SHORT TERM PERIOD

7. TO GOVERNMENT FOR VARIOUS PURPOSE

8. RESIDENTIAL PURPOSE

9. COMMERCIAL PURPOSE

STATUS OF OUR ORGANIZATION IS AUTONOMOUS BODY/BODY CORPORATE

PLEASE GUIDE US ON LIABILITY OF SERVICE TAX FOR LAND GIVEN FOR ABOVE MENTIONED PURPOSE.

THANKS

AI Summary

Renting of immovable property: taxability turns on use, provider obligation to collect, and segregation of amenities.
Renting of immovable property is a declared taxable service subject to specified exemptions; residential use is generally exempt while commercial use is taxable. Liability to collect and remit service tax normally lies with the service provider, and place of provision is the property's location; where the provider cannot segregate consideration for movable amenities, the consolidated rent is liable to service tax, but segregated charges subjected to deemed sale and VAT may not be taxable as service.