My client is the owner of a mall and has fully rented out its premises to various leading business establishments.They are collecting vehicle-car and two wheeler -parking fees from customers (who visit the mall) based on the actual no. of hours parked.Parking is happening at three three different places.
1.Basement parking
In the case of basement parking, a certian portion is reserved for the employees of the tenant.No separate fee is collected for such parking from the tenants.The balance area is where the public/customers are allowed to park on payment basis.The client himself does not carry out any business(except renting of the property as mentioned above)in the mall/premises.
2.On the sides of the mall within the compound on concrete surface as "open area" parking.
3.On a vacant land adjacent to the building.
This category may be exempted from service tax in view of the ExplanationI (c) to sub clause (zzzz) of section 65(105)
QUERY
Whether service tax is payable by the client for parking fee collected directly from customers/visitors under each of the above category ?
Ananthapadmanabhan.G.
CAclubindia
