Exempts service tax on local taxes paid on taxable services of renting of immovable property - 024/2007 - Service Tax

Service tax exemption for renting of immovable property allows deduction of local property taxes from taxable value.

Exempts the taxable service of renting of immovable property by allowing deduction of property tax levied and collected by local bodies from the gross amount charged for renting when computing the value for service tax; interest or penalty paid to local authorities is not deductible, and property tax must be apportioned where tax periods differ.