service tax is applicable or not???

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2011 what is provision of service tax in case of house rent is received in hands of individual from flats constructed on comercial converted plots???????

CA Suresh Jain

CA Suresh Jain (Expert)
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10 June 2011 The provision is as under :-
“renting of immovable property” includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include —

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre.

Explanation [1]. — For the purposes of this clause, “for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings;]

[Explanation 2. — For the removal of doubts, it is hereby declared that for the purposes of this clause “renting of immovable property” includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;]

If rent is not received from the immovable property for use in the course of furtherance of business and commerce, it is not taxable. The status of plot whether commercial or residential etc is not relevant for any further clarification you may contact CA suresh jain at sureshjain.nj@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2011 Thanx jain shaheb first of all
to clear my doubts please tell me that service tax is applicable only in case of "for use in the course or furtherance of business or commerce" and not applicable in case of flats rented for residence purpose.??
hence no need to take licence in service tax dep. thought the receipts may more than 10-12 lacs. in a year?