The renting of immovable property for business and commerce activity is taxable from 01.06.2007 vide notification No. 3/2007 dated 22.05.2007.
The property used for residential purpose does not fall in this ambit.
Thanks for the solution, I want to clarify whether the same apllies to Granite Quarry land given on lease for Rs 40lakhs per annum. what is rate and who should pay it.
If you look at the definition of Immovable Property as per section 65 (105)(zzzz), it specifically excludes Vacant land solely used for Mining purposes. Hence, mining activities will not be under the purview of tax on Renting of Immovable Property.
Ganesh.
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