Service tax applicable to renting by charitable trust?
This query is : Open
25 January 2013
Hello,
A Charitable Trust is registered under u/s 12AA(1)(b)(ii) r.w.s. SECTION 12 A of the Income Tax ACt 1961. A Property owned by the Charitable Trust is given on rent to the OFFICE OF THE INCOME TAX(HEAD QUARTERS) Rent amt : Rs. 1,27,700/- p.m.
The Trust is formed to fulfil the following objectives: RELIEF OF POVERTY, EDUCATION RELIEF, MEDICAL RELIEF, for advancement of society
Does the trust have to collect Service Tax?
A Charitable Trust is registered under u/s 12AA(1)(b)(ii) r.w.s. SECTION 12 A of the Income Tax ACt 1961. A Property owned by the Charitable Trust is given on rent to the OFFICE OF THE INCOME TAX(HEAD QUARTERS) Rent amt : Rs. 1,27,700/- p.m.
The Trust is formed to fulfil the following objectives: RELIEF OF POVERTY, EDUCATION RELIEF, MEDICAL RELIEF, for advancement of society
Does the trust have to collect Service Tax?
26 January 2013
As i think the rent received by trust is for the earning profit it is not a charitable activity it is a business activity and it amounts to earning profit so it will come under service tax provision.
Message likes :
1 times
26 January 2013
Hello,
Is renting a property to Income Tax Office(being Government) not exempt?
Is this not covered under advancement of any other object of general public utility in exemption 25/2012?
Is renting a property to Income Tax Office(being Government) not exempt?
Is this not covered under advancement of any other object of general public utility in exemption 25/2012?
28 January 2013
Hi,
In my opinion renting of property to Income tax office is not advancement of any object of general public. It is not for benefit/welfare of public. also Income tax department does not covered under Government or Government authority, as there is specific definition of Government authority under mega exemption notification as as per that there are specific function to be carried out by authority to become government authority for mega exemption purposes.
It need a details analysis and discussion, so please consult to your service tax consultant for better clarity.
regards
CA Vipin Jain
In my opinion renting of property to Income tax office is not advancement of any object of general public. It is not for benefit/welfare of public. also Income tax department does not covered under Government or Government authority, as there is specific definition of Government authority under mega exemption notification as as per that there are specific function to be carried out by authority to become government authority for mega exemption purposes.
It need a details analysis and discussion, so please consult to your service tax consultant for better clarity.
regards
CA Vipin Jain
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
