Kindly clarify if a religious body renting its immovable property have to collect and pay service tax , Whether there is any exemption available to a religious body in renting of immovable property?
ANAND V NAYAK (CHARTERED ACCOUNTANT) (30 Points)
13 July 2012Kindly clarify if a religious body renting its immovable property have to collect and pay service tax , Whether there is any exemption available to a religious body in renting of immovable property?
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 13 July 2012
ANAND V NAYAK
(CHARTERED ACCOUNTANT)
(30 Points)
Replied 13 July 2012
thanks for the reply Ajit , But whether renting to a Bank will also be covered as the mega notification states renting to general public.Kindly clarify
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 13 July 2012
ANAND V NAYAK
(CHARTERED ACCOUNTANT)
(30 Points)
Replied 14 July 2012
The renting to the bank is well within the area of the religious place.
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 14 July 2012
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 16 July 2012
Renting of precincts of a religous place meant for general public is exempt. Renting to bank is not exempted.
ANAND V NAYAK
(CHARTERED ACCOUNTANT)
(30 Points)
Replied 16 July 2012
CA sawan kumar
(senior associate)
(154 Points)
Replied 16 July 2012
The basic of intent of exemption is the nature of transaction. If its for a religious purpose, for general public its exempt. But a bank is definetely for a religious purpose or for general public. Its purely commercial in nature and service tax would be imposed on that transaction.
ANAND V NAYAK
(CHARTERED ACCOUNTANT)
(30 Points)
Replied 16 July 2012
The exemption notification doesnt state the purpose of renting it states " renting of precincts of religios place meant for general public". Precincts should be of religious place and renting should be for general public. Renting to General public may involve commercial and non commercial entities. Accordingly both entities will be covered.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India