Any property leased by any State Industrial Development & Investment Corporations (which is sole government agency in development of land for industrial enterprises) to any industrialist for 99 year lease for providing vital infrastructural facilities to promoting accelerated growth of industrial sector in the State.
My question is that lease amount paid by industrialist is liable to service tax under “renting of immovable property” under Section 65 (105) (zzzz) of Finance Act, 1994
May not be liable under this entry as only built up properties are liable under rental. Further legal aspect of whether 99 yrs lease is sale or not may also shed some light on the same .
Hi,
As per Finance Act 2010, I find the following explanation added defining what an Immovable property is.
Vacant Land, given on lease or license for constrution of building or temporary structure at a late stage to be used for furtherance of business or commerce.
Looking at the above explanation, I feel the lease might still be covered under this service. Also, as suggested by Madhukar, Lease cum sale might also have an impact.
Thanks,
Ganesh
CAclubindia
