Service Tax on Rent of Land

This query is : Resolved

CA. Komal Savaliya (Querist)
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23 May 2008 Dear all,
One of my client has provided land on rent for the purpose of petrol pump. All the structure of petrol pump was built up by them only. Whether rent collected by my client is covered under service tax? As per finance Act, immovable property does not include vacant land. In this case can we consider land given on rent to petrol pump as a vacant land?

Pls help me on this querry

Thanks

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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23 May 2008 hi Komal,

where do u see vacant land not included in definition of immovable property. i checked in i.t act. there explanation to sec 2(47) refers to sec 269UA(d) which includes land in immovable property. no reference is there for vacant or occupied.

so, i believe service tax is applicable on ur client.

CA. Komal Savaliya

CA. Komal Savaliya (Querist)
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24 May 2008 Hi Yayati,

I am not talking about definition given under IT Act. Definition given under service 'Renting of Immovable Property' does not include vacant land.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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26 May 2008 hi Komal,

ur point looks correct. i also think service tax is not applicable on ur client.

CA. Komal Savaliya

CA. Komal Savaliya (Querist)
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03 June 2008 Dear all,
One of my client has provided land on rent for the purpose of petrol pump. All the structure of petrol pump was built up by them only. Whether rent collected by my client is covered under service tax? As per finance Act, immovable property does not include vacant land. In this case can we consider land given on rent to petrol pump as a vacant land?

Pls help me on this querry

Thanks

CA Anand Sarda

CA Anand Sarda (Expert)
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20 June 2008 it is not at a vacant land.

Immovable Property excludes
a) Vacant Land solely used for agriculture purpose, mining purpose,aqua culture,animal husbandry, foresty,etc

b) Vacant Land,whether or not having facility clearly incidental to the use of such vacant land.

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