Taxability on lease rental income of the town municipality

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2014 One of my client is a town municipal council given its immovable property namely shops/stalls on lease basis to its customer for the financial 2012-13 and total collection was made Rs.1241030.00 as lease rental income.Please enlighten us how much the service tax is to be paid by my client, what is the exemted portion amount out of the total collections made.
Whether any penalty may impose alongwith service tax?

Amol S Joglekar

Amol S Joglekar (Expert)
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23 November 2014 As per notification 30/2012, reverse charge mechanism comes into play and the service receiver has to pay the service tax...100%
http://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm
go to item no 6