Service tax on rent-building given to govt.

Dear Parul,

Prima Facie it looks like the service tax Shall be laviable on renting of Building to a Government Oranisation as no exemption is given to the "Goverment organisation" under Negetive list or Mega Exemption list.

However you need to further evaluate the usage of rented building whether it will cover under entry No 9 of Notification 25/2012 produce herebelow for your reference.

Services provided to or by an educational institution in respect of education     exempted from service tax, by way of,-

1. auxiliary educational services; or
2. renting of immovable property;

In addition to what Dharmesh has stated, the liability to pay Service tax, if any, would arise on such government organization, reverse charge mechanism it not application on renting on immovable property by the Government.