Applicability of st on renting by trust

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harish (Querist)

18 January 2013 Is Service Tax applicable on renting of guest house by trust some times for Marriages and also sometimes for Daily Passengers ?

@VaibhavJ

@VaibhavJ (Expert)

18 January 2013 Hey,

Notification no 25/2012-st dtd 20-6-2012 lists out 39 services exempt from service tax and Section 66D gives 17 negative list of services on which service tax is not chargeable. Prominent ones include services by Charitable trusts registered u/s 12AA of IT Act 1961 by way of charitable activities.

So no ST to be payable if it is for charitable purpose other wise ST to be charged if total receipts is more than Rs.10 lacs.

Thanks!!

Message likes : 2 times

harish

harish (Querist)

19 January 2013 Will there be Liability for Service Tax Registration & Collection, if the Same Rooms are Sometimes used for the purpose of renting of the said Guest House for:
1) Daily Passengers whose rooms tariff per day is less than Rs.1000 (N.N. 25/2012, Point No. 18),
2) Marriage & Social Purpose for which the annual collection of amount in INR is less than 10 lacks.

harish

harish (Querist)

19 January 2013 Addition to above statement......
The collection from Passengers rent and collection from renting for marriages is greater than Rs. 10 Lacks when combined together

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