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PURVI (Querist)

09 March 2013 u/s 194i tds on rent ,in that tds deducted after charging servicetax but which type of services are included in it? or giving to any one.

Jayant Bothra

Jayant Bothra (Expert)

09 March 2013 Dear Purvi,

The Finance Act, 2007 brought the service of renting of immovable property for furtherance of business or commerce under the net of service tax w.e.f 01.06.2007. In the year 2009, High court of Delhi in the case of Home Solution Retail India Ltd. V Union of India, held that the taxable category of renting of immovable property covers only such services as are in relation to renting of immovable property, not the activity of renting of immovable property itself.

Because of ambiguity the Government amended the definition of taxable service "renting of immovable Service". The amended definition is "any service provided or to be provided to any person, by any other person, by renting of immovable property or any other service in relation to such renting for use in the course of or, for the furtherance of business or commerce".

Therefore by the amended definition, the owner of property who is providing it on rent and the person providing any service in relation to renting if such property i.e. property delaers are brought under the service tax .

Thanks & Regds
CA Jayant Bothra
M: 9873-626-020

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