Service Tax on Renting of Immovable Property

Yes, the levy of service tax on renting of immovable property is correct. 

As per the budget amendments, the word "in relation to " deleted in the defintion of service. Service tax will be attracted irrespective of HOme solutions case

If your property is used solely for residential purpose or non-commercial purposes then you do not need to pay any service tax.

The budget 2009-10 proposed the collection of the tax with retrospective i.e. from 01.06.2007 on renting of immovable property for commercial purposes. But this has been stayed by the Andhra Pradesh High Court.