Renting of terrace for erecting mobile tower

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2014 Dear Sir,

I have a querry whether service tax will be applicable on renting of terrace for erecting Mobile Tower to Telecom Operators under renting of Immovable Property and the rate of Service Tax.

Pls give supportings, thanks in advance.

Regards

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 June 2014 Yes, service tax will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2014 Pls give the supporting

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2025 Applicability of Service Tax on Renting Terrace for Mobile Tower
Renting of immovable property is a taxable service under "Renting of Immovable Property" (Service Tax Chapter V of Finance Act, 1994, Section 65(105)

Renting terrace space of a building to telecom operators for installing mobile towers is covered under this service.

The rent paid for use of immovable property (terrace), even if for telecom infrastructure, is treated as a taxable service.

Rate of Service Tax (As of 2014)
The applicable rate was 12.36% (which includes 12% service tax + 2% education cess + 1% SHE cess).

Supporting References
Section 65(105)(zzzz) of the Finance Act, 1994

Defines renting of immovable property as a taxable service, including renting space for commercial use like mobile towers.

Circular No. ____ST dated 5-12-2013 by CBEC

Clarifies that renting of terrace for erecting telecom towers is taxable under “Renting of Immovable Property”.

CBEC Service Tax Manual & FAQ

FAQs specifically mention renting terrace for telecom towers attracts service tax.

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