Renting of immovable property.

[MANASH MUKHERJEE]

Dear Sir ,

A party received refundable security deposit in addition to monthly rental . Wheather the amout received as refundable security deposit is chargeable to Service tax or is exempted?

AI Summary

Security deposit for rental is not service consideration; it becomes taxable if later adjusted against rent.
Refundable security deposits in renting immovable property are not consideration for service and thus not liable to service tax when held solely as security; if the deposit is later adjusted or appropriated against rent or service charges, it constitutes consideration for the service and becomes taxable.