Provisions of service tax - Renting of Immovable Property

[Asked by 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

Renting of Immovable Property: rent to postal services used for commercial activities is liable to service tax under renting services.
Renting of immovable property is taxable when the premises are used in the furtherance of business or commerce. A small service provider threshold exemption exists, but no broader exemption is available. Postal activities performed as sovereign public functions would not amount to business use and thus not attract service tax; however, where postal operations are classified as commercial/business activities (examples cited include speed post, insurance and agency-like services), renting premises to such postal functions is covered by the renting of immovable property service and liable to service tax.