Renting immovable property

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Shashikanth Dongre (Querist)
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28 January 2016 what ways we can reduce the service tax on renting immovable property(commercial) ? I mean those which can be taken into consideration while drafting the agreement itself? thanks in advance.

Ganeshbabu K

Ganeshbabu K (Expert)
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28 January 2016 No servicetax applicable on refundable security deposit.so collect more deposit and reduce rent amount.
You have no option except this.
You make sure that rental agreement contains clause "Tenant is responsible for payment of servicetax @14.5% on agreed Rent"( so that they cannot avoid payment of servicetax.

Service recipient / tenant is liable to pay service tax. It is the responsibility of the land owner to collect it from the tenant and remit it to the department.

Shashikanth Dongre

Shashikanth Dongre (Querist)
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28 January 2016 is renting of terrace space is exempt if it is maintained as a separate component of total premise rented? is there any such provision?

Ganeshbabu K

Ganeshbabu K (Expert)
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04 February 2016 if it is for business purpose it is liable to pay service tax,

even you given little parking space infront of your building it is also subject to servicetax

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