22 August 2015
If any Person Has A Business Of Giving His Property On Lease And HaS Given His Property On Lease To Bank Will He Charge Service Tax From Bank Or Not Please Reply??
The govt. has included SERVICE TAX ON RENT ING OF IMMOVABLE PROPERTY in Declared Services while introducing the Negative List of Services in Service Tax (w.e.f. July 1, 2012)
Declared Services means: services which would be deemed to be a service (whether it is a service or not) and service tax payable on them.
In view of the above changes, Service tax is said to be applicable on renting of immovable property, except in the below mentioned types:
• Renting of vacant land, relating to agriculture • Renting of residential dwelling units for use as Residence • Renting out any property by the Reserve Bank of India • Renting out any property by a Government or local authority to a non-business entity Applicability of Service Tax: Service tax in mandatory, if the total value of services provided by service provider exceeds the threshold limit of Rs. 10.00 lacs p.a. If the total value of services provided by the service provider is less than Rs. 10.00 lacs, service provider not mandatorily liable to pay service tax.
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