Service tax liability on administrative charges and rent?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 one commercial complex collect administrative charges yearly from all members. member means all owner of shops in this complex. whether this service tax chargeble on this charges? this complex give space to advrtising agency for hording on the terrace. whether this service tax charge on this rent bill?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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02 February 2012 Collection of administrative charges is not generally covered by service tax, but in this instance it appears that these charges for maintenance and repairs / renovation of the common areas. If it is so there is rendering of maintenance service and hence the amount would be subject to service tax.

The renting of terrace for purposes of harding is renting of immovable property for commercial purposes and the same is subject to service tax.

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Arun Gulati

Arun Gulati (Expert)
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04 February 2012 what is nature of administrative charges..if you are separately collecting to upkeep the common area and maintenance of common facility then you are covered under 'MMR' as my friend correctly said in his reply. but you are charging the same as part of renting of immovable property then you are liable to pay tax on same under 'Renting of immovable property'...I think if you are renting terrace for hoarding, you are covered 'selling of space services' as providing space for display, advertising, showcasing of any product or service in 'public places, building,' are covered under said category. Please read definition of selling of space.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2012 Thanks for kind information.
i got the information that administrative and membership charges collected by commercial complex's association is covered under service tax under the service name "club or association service to its member".
so that charges are taxable. rent is also covered under the service name "renting of immovable property".