is service tax applicable on rent present?

[chaganti srinivas]

Dear Sirs, i have one doubt i.e., is service tax applicable on rent present? is there any exemption of service tax on rent? pls. give your valuable replies on this issues. thanks to all advance.---__--- BENARJEE GOVADA

[Sandeep Chaudhari]

Dear Sir,

Yes. ST is applicable on Rent under the ST heading "Renting of immovable property services". As per definition provide in Section 65 (105)(zzzz) it is applicable only on renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce.

Exemption to this is as follows,

Service tax is payable on the rental amount received less the actual amount of property tax paid to the local authority.---By Notification no. 24/2007.

[CASeetharaman KC]

Service tax is applicable on rent provided the property is used for furtherence of business or commerce. There was some doubts cast by the judgemnts in Delhi High Court - Home Solutions case but there are subsequent decisions confirming the applicability of the tax  and so it is definitely safer to pay

AI Summary

Service tax on renting of immovable property: applies when property is used for business, taxable after property tax deduction.
Service tax applies to renting of immovable property services where the property is used in the course or furtherance of business or commerce; the taxable value is the rental amount received less the actual property tax paid to the local authority as permitted by the applicable exemption mechanism.