Lawn provided by charitable trust - subject to service tax

[CA.ANCHAL RASTOGI]

a charitable trust provide its lawn for both social like marriage as well as commercial purposes like exhibition diwali mela etc. wether it is liable for st or not

[Guest]

The activity would be covered under 'Mandap Keeper' service, as the 'Mandap' includes all kinds of immovable properties including open land and service rendered by 'any person' including charitable trust is covered. In case, the aggregate taxable service income of the Trust does not cross Rs.8 lakhs per annum, then based on exemption provided for small service providers, no service tax would be payable.

[Guest]

In case if this service is classify as " Rent on Immobable property" ST not applicable on Rent on Immovable property [ New service ] since, Renting to Charitable trust - Renting from chartiable trust will not attract S.T.

AI Summary

Mandap Keeper service classification can render charitable trust lawn hire subject to service tax unless exempted. Provision of a trust's lawn for events is taxable if classified as Mandap Keeper service, which includes services in respect of immovable property such as open land and thus covers charitable trusts, subject to small-service-provider exemption; alternatively, if characterized as Rent on Immovable Property, the hiring would not attract service tax.