Provisions of service tax - Renting of Immovable Property

[Guest]

We are a Ltd Co. and wish a clarification for attraction of provisions of service tax on Renting of premises to Post office situated in our factory complex from which we are collecting monthly rent. Is it covering in the service tax under 'Renting of Immovable Property' Services or any exemption is there.

AI Summary

Debate on Service Tax for Renting to Post Office: Commercial Activity or Sovereign Function? Clarification Sought. A limited company sought clarification on whether renting premises to a post office within their factory complex is subject to service tax under 'Renting of Immovable Property' services. Responses varied: one noted an exemption for small service providers up to Rs. 8 lakhs, while others debated whether the post office's activities are commercial or sovereign functions. One reply referenced a Master Circular indicating that certain postal services are business activities, thus subject to service tax. The consensus was not reached, with differing views on whether the post office's use qualifies as commercial, impacting tax liability.