Applicability of service tax on maintenance bill

[Ashutosh Chhawchharia]

Whether service tax is applicable on maintenance bill raised on tenant by the landlord of commercial building? Maintenance includes services of A.C.Unit, Furniture and other amenities.? Please give proper case laws reference?

[Rama Krishana]

The amount charged or collected on account of maintenance including service of AC unit, furniture and other amenities by the landlord from the tenant would be subject to service tax. Since this issue is new one there is no specific decision covering this aspect but decision of Delhi High Court in the matter of Home Solution Retail [2009 -TMI - 33136 - DELHI HIGH COURT] my be referred to [para 35]

AI Summary

Service tax on maintenance charges affirmed as taxable when levied by landlord on tenant, citing relevant case guidance. Amounts charged by a landlord to a commercial tenant for maintenance - including AC, furniture and other amenities - are treated as consideration for a taxable service and therefore subject to service tax; limited direct precedent exists, with the Delhi High Court decision in Home Solution Retail (para 35) cited as persuasive guidance.