Service tax on rent an immovable property

This query is : Resolved

CA Himanshu Sharma (Querist)
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05 February 2019 Dear All
One of my clients has given his one building to a school for education purposes from 2013-14 .
My questions are-
1. Is it taxable service for FY 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18 or not?
2. If it is taxable service , is there any abatement in relation of this service ?

D D BAHETI

D D BAHETI (Expert)
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06 February 2019 Initially same was covered in Negative List in 66D
services by way of—
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
(m) services by way of renting of residential dwelling for use as residence;

Further vide Notification no. 25/2012, following insertion was made:
Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-

(a) auxiliary educational services; or
(b) renting of immovable property;
and later on vide NOtification no. 06/2014 dated 11th July, 2014, it was amended as below;
for entry 9, the following entry shall be substituted, namely:-
“9. Services provided,-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(iv) services relating to admission to, or conduct of examination by, such institution;”;

So accordingly in FY 2013-14 and upto 11th July 2014, Same is exempted and thereafter Renting Services are taxable and there is no abatement on this particular service.

Hope it will help you.

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CA Himanshu Sharma

CA Himanshu Sharma (Querist)
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11 February 2019 Thank you very much sir

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