Service Tax on Rent paid to Lessor

Will rent paid by one Charitable Trust to Another Charitable Trust attract Service Tax? Rent paid is Rs.1 Lakh per month for building owned by the Lessor who has exemption u/s.80G for donations received. The Lessee does manufacturing activity in the building. Are both the Trusts liable to be registered under the Service Tax Act?

Replies (2)

Service Tax is payble. On this service, the liability to pay service tax is on the service provider, i.e. the lessor.

The lessee will be eligible to avail credit if it is paying central excise duty on manufacturing.

renting of immovable property by a religious body or to a religious body or by an educational body is exempt from service tax. Is charitable trust is hiring for religious or education purpose?

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