26 April 2012
Car parking is not service. You may refer the TRU letter dated 26.02.2010 which clarrifies that charges for providing parking space have been excluded. However, there are dispute are going between the Department and assessees that parking charges are subject to service tax as there are making distinguish between open parking and covered parking. For more detail you may call on my No. 9999180329.
1. Parking space is specifically covered under the definition of 'residential complex' under Section 65(91a) of Finance Act, 1994.
2. TRU letter dated 26.02.2010 is in reference to exclusion of parking space from new service introduced in Budget 2010 as 'Preferential Location Service' and it is also logical because it is already covered under 'Construction of Complex service ', therefore, it has been excluded from 'Preferential Location Service because parking space is not preferential facility, it is normal and common facility.
01 May 2012
Nikhil is very near to correct reply but open space car parking is different then the parking space in the residential housing society. The present dispute has not been settled and no specific reply can be given so let all of us wait till it is finally decided by the ST Department. No doubt against collection of car parking no VAT is paid and hence it is a kind of service and parking facility is allowed by the person who is owning car parking by way of own land or by way of lease premises or by bidding for car parking slot.