Service tax on rent of party plot

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2014 Hi,

We are giving service as a Party plot with catering.

We have devided all activities between three company.

Here one company charge for Rent of Party Olot. Second company charge for Food. And third one charge for Decoration and other things.

Here my question is that on which rate service tax to be charged on Rent Portion in First Company. Abatement under Notification no 26/2012-ST. entry no 6 is availeble here?? We should charge 12.36% on 100% value or 60% value(as per notification.

Thanking you in advance.

Kalam

Kalam (Expert)
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26 May 2014 Your company is providing land on rent. Lets refer the entry no 6 of Notification 26/2012 - " Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for RESIDENTIAL or LODGING purposes."

I don't think that your case would qualify in above entry. In absence of any exemption, I am of the opinion that on full value of rent service tax should be paid.

Annu Agarwal

Annu Agarwal (Expert)
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27 May 2014 I too agree with Mr Kalam Ji,The renting of plot by your company would not get the abatement as the plot i neither meant for any residentiial nor lodging purpose.Service Tax shall be paid on full value @ 12.36%

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