SERVICE TAX RENTING OF IMMOVEABLE PROPERTY PROVISIONS
What is the meaning of ‘immoveable property’?
‘Immoveable property’ has not been defined in the Act. Therefore, the definition of ‘immoveable property as given in clause (26) of the General Clauses Act, 1897 has to be taken as per which “immovable property” shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth.
Covered in declared services :In the definition of ‘service’ contained in clause (44) of section 65B of the Act it has also been stated that service includes a declared service. The phrase ‘declared service’ is also defined in the said section as an activity carried out by a person for another for consideration and specified in section 66E of the Act. The following nine activities have been specified in section 66E:
1. renting of immovable property;
2. construction ............"
Renting of Immovable Property
Renting has been defined in section 65B as ‘‘allowing, permitting or granting access, entry,occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property’
Is renting of all kinds of immovable properties taxable?
No. Renting of certain kinds of immovable properties is specified in the negative list. These are –
renting of vacant land, with or without a structure incidental to its use, relating to agriculture.
renting of residential dwelling for use as residence
renting out of any property by the Reserve Bank of India
renting out of any property by a Government or a local authority to a non-business entity.
Renting of all other immovable properties would be taxable unless covered by an exemption as given below.
Reliance Has started Property services Now. Buy sell rent properties .Find property for everyone needs . A new services by Reliance group.
Are there any exemptions in respect of renting of immovable property?
Yes. These are:–
Threshold level exemption up to Rs. 10 lakh.
Renting of precincts of a religious place meant for general public.
Renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a room below rupees one thousand per day or equivalent.
Renting to an exempt educational institution
