Dear Sir, With respect to Small Service Provider Exemption, my client is paying excise duty on the

[Chalapathy Rao Marthy]

Dear Sir, With respect to Small Service Provider Exemption, my client is paying excise duty on the goods manufactured by them. Recently they have let a part of thier unutilised Land to another entity. Are they liable to Service Tax. The revenue from renting does not cross Rs 9 Lakhs. They also pay ST on GTA.

AI Summary

Service Tax Liability on Rental Income Explained: Exemption Up to Rs 10 Lakhs Under Notification No. 6/2005 A client paying excise duty on manufactured goods has rented out part of their unused land to another entity. They are concerned about their liability for service tax on this rental income, which does not exceed Rs 9 lakhs. The response clarifies that since the land is incidental to the use of a building, it is subject to service tax. However, they can avail an exemption up to Rs 10 lakhs under notification no. 6/2005. Paying service tax on Goods Transport Agency (GTA) services does not affect eligibility for this exemption.