Service tax applicability on forfieted security deposit

The Company has taken Security deposit from the tenants while leasing out the premises. Since conditions of the lease deed are not complied by the tenant, Company has forfieted the Deposit amount.

Question is whether Service Tax is applicable on the forfeited amount?

 

Replies (3)

As per clause (44) of the new section 65B, 'service’ means, "service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include

(a) an activity which constitutes merely,

(i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or

(ii) a transaction in money or actionable claim;

(b) a provision of service by an employee to the employer in the course of or in relation to his employment;

(c) fees taken in any Court or tribunal established under any law for the time being in force.

Thank You for the quick reply. 

But I need a specific answer. Whether Service Tax is applicable or not?

Not applicable. As it is not a service.

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