Service Tax applicability of surrender of Tenancy Rights

[Mukesh Panchal]

We have received consideration from landlord for surrender of tenancy Rights. Whether service Tax is applicable on this amount under section 66E?

AI Summary

Surrendering Tenancy Rights for Consideration is Taxable as a Declared Service Under Section 66E of Finance Act A discussion on the applicability of service tax on the surrender of tenancy rights involved multiple participants. One individual questioned if receiving consideration from a landlord for surrendering tenancy rights is subject to service tax under Section 66E. A participant confirmed it as a declared service under the Finance Act, thus taxable. Another argued that no service was provided, likening it to a property sale, and questioned the tax's applicability. Further replies suggested that surrendering tenancy rights involves refraining from enjoying certain rights, thus falling under the taxable service category. The discussion concluded with an agreement on the tax's applicability.