Renting of immovable property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2010 We are dealing in renting of immovable property and after sometimes tenant wanted us to provide some facilities such as maintenance of premises, water supply, electricity supply etc.and we do that and charge service fees for the same. I want to ask whether service fees is taxable under renting or some other category?Please tell.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

18 December 2010 As the activity of letting out is separate from the provision of other services, the so called service Service fees may be treated as business income against which you may claim the relevant business expenses incurred in connection with the provision of such services.

Shyam Lal Naik

Shyam Lal Naik (Expert)

18 December 2010 The additional services provided by you are in relation to renting of immovable property. As such, as rightly pointed by you, these will be taxable under service tax. This is as per the express provisions as well as the view of the Delhi and Mumbai High Court.

However, if the renting is not for business or commerce, the said services are not taxable.

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