rental income is it a taxable service?.

[gangaram chandwani]

What are the case laws available? Does rental income be called a service ? Does our constitution permit imposition of service tax on rental income ?

AI Summary

Rental Income from Commercial Property Subject to Service Tax per Finance Act 1994; Amendment Under Supreme Court Review A query was raised about whether rental income constitutes a taxable service. The reply clarified that leasing immovable property for commercial use is subject to Service Tax under the Finance Act 1994. The Delhi High Court ruled in 2009 that rent itself is not liable to Service Tax, as taxation on land falls under state jurisdiction. However, services related to renting are taxable. The 2010 Budget amended the law to include renting of property as a taxable service, effective retroactively from 2007, which countered the High Court's decision. This amendment is currently under appeal in the Supreme Court.