TaxTMI 
TaxTMI 
renting of vacant land
11 Jan 2011 
1 Reply 
1733 Views Asked by
Guest 
Service tax applicability on vacant land leases arises when construction is permitted; effective from July 2010.
Service tax applies to vacant land leased where the lessee is permitted to put up permanent or temporary structures; the tax is triggered by the grant of construction permission. The amendment introducing this applicability took effect in July 2010 and is not retrospective. (AI Summary)
Service tax applies to vacant land leased where the lessee is permitted to put up permanent or temporary structures; the tax is triggered by the grant of construction permission. The amendment introducing this applicability took effect in July 2010 and is not retrospective. (AI Summary)
A public undertaking is a developer of industrial estates by acquiring the land and develop industrial infrastructure and the land is allotted on a lease basis. The land cost is received upfront and the characcteristic of lease is retained only to maitain the purpose for which it was allotted. since the vacant land is leased for furtherence of the business, service tax is applicable and if so from which date?.