According to readings and findings in Service tax law & procedure latest addition, commercial rent is itself taxable hence aatrect 12.36% additional burden being service tax. i.e. if any body pays Rs.100/- per sq. feet or any way that person is liable to pay now Rs.112.36 being the rent of commercial properties.
However the following properties are exempt from Service tax laws.
1. Vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbendary, mining purposes
2. Vacant land, of any type having no clear tytle for its use
3. Land used for Educational, sports, circus, entertianment and parking purpose
4. Building used solely for residential purpose
5. Building used for accomodation like hostel, hotels, boarding houses, holiday accomodation, tents, camping facilities
6. Renting of immovable property to/by a religious society/trust/body
7. Renting of immovable property to an educational body that does not includes commercial training/coaching centre.
8. Mixed use of land/building I.e. partly residential and partly commercial will be trreated as whole building/land commercial hence rental income will attract service tax @ 12.36%
Exemption limit of Rs.800000/- is applicable i.e. only rent received or paid during the year more then Rs.8,00,000/- will attrect service tax @ 12.36%.