Service tax on renting of immovable property

Generally lessee, when unspecified.

No reverse charge mechanism is applicable in respect of ST on renting of immovable property. Hence, the owner of the property (service provider) is liable to pay ST provided the property is commercial (no ST for residential purpose) and exemption limit is exceeded. If nothing is mentioned in the rental agreement, it can be assumed that no ST is applicable due to any of the above reasons. But it is again debatable because if ST is applicable, then ST has to be paid by the lessee if such clause is provided anywhere in the agreement. For safeguarding your (lessee's) interest, I suggest that it is better to include a clause mentioning that no other taxes are applicable.