Service tax applicability

[Guest]

Sir, This is with reference to amendment and extention of scope of 'Renting of immovable property' in this finance bill , I have a query Whether service tax applicable in view of above changes to any commercial concern i.e Company/ malls /society etc when they are in business of a) Milti level car / scooter parking in covered area ( i.e earmarked area in malls / co. means for parking perposes ), parking charges is on hourly basis and it is open for general public b) Daily parking in open space and charging hourly basis rate from general public? Whether your answer will be diiffrent if the concern let out its parking slot for fixed terms i.e for specific client and for specific time? Thanks Manoj

[Surender Gupta]

If you read the definition carefully, it is the land which is used for parking purpose is not taxable under service tax.

AI Summary

Service tax on renting immovable property: land used for parking is not taxable under the service tax definition. The operative position stated is that land used for parking purposes is not taxable under the service tax definition; consequently charges for use of parking land fall outside the service tax net, and the reply does not indicate a different treatment for fixed-term lets of parking slots.