I CAME TO KNOW THAT FOR RENTING OF MANDAPS IS TAXABLE, BUT THE SAME IS EXEMPT FOR RENTING OF PRECINCTS OF A RELIGIOUS PLACE MEANT FOR GENERAL PUBLIC.
BUT MY QUERY IS, IF SOME MANDAP KEEPER PROVIDE, TO ANY PERSON, MANDAP ON RENT FOR RELIGIOUS PURPOSE NOT AT A RELIGIOUS PLACE, WILL THE SAME BE TAXABLE OR NOT?
03 August 2024
In India, service tax exemptions can vary based on specific conditions and categories of services. For mandap services, particularly when provided for religious purposes, there are specific rules and exemptions that apply.
### **Service Tax on Mandap Services:**
#### **1. General Taxability of Mandap Services:**
- **Taxable Service:** Renting of mandaps (or similar facilities) for various events, including marriages and parties, falls under taxable services. The service provider is typically required to charge service tax on the rental amount.
#### **2. Exemption for Religious Purposes:**
- **Exemption for Religious Places:** There is a specific exemption under the service tax regime for renting of precincts of a religious place meant for general public use. This exemption is applicable when the premises are part of a recognized religious place and used for religious purposes.
- **Notification Reference:** Under the service tax laws, **Notification No. 25/2012-ST** and its amendments provide exemptions for certain services. For example, under this notification, the renting of precincts of a religious place meant for general public is exempt from service tax.
#### **3. Mandap Services for Religious Purposes Not at a Religious Place:**
- **Taxability in Such Cases:** If a mandap keeper provides mandap services for religious purposes but the mandap is not located within a religious place or precinct, the general rule of taxability applies. In such cases, the service would be taxable as it does not fall under the exemption provided for religious places.
- **Specific Situation:** Even if the purpose of the event is religious, if the mandap is not situated in a place recognized as a religious precinct, the exemption does not apply. The service tax would be applicable based on the standard provisions for mandap services.
### **Summary and Recommendations:**
1. **Service Tax Applicability:** - **Mandap Services:** Taxable if the mandap is not part of a religious precinct meant for general public use. - **Religious Purpose at Non-Religious Place:** Service tax is applicable in this scenario as the exemption specifically applies to premises located within recognized religious places.
2. **Consult Relevant Notifications:** - **Review Notifications:** Check the latest notifications and circulars for any updates or changes in the exemptions and their applicability.
3. **Seek Professional Advice:** - **Tax Professional:** It is advisable to consult a tax professional or legal advisor to ensure compliance with the latest regulations and to receive guidance tailored to your specific circumstances.
By understanding these nuances, you can better determine your obligations regarding service tax for mandap services provided for religious purposes.
03 August 2024
Thank you for your reply, however query has expired a long time ago. Service tax resolution is no longer required since the introduction of GST. Appreciate your time and knowledge but I would advise not to reply to dead queries.
CAclubindia
