service tax on rental income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2010 I have property in residential area. If I give the same on rent to NGO then should I charge service tax on rental income.

Yearly rent exceeds Rs. 10 Lacs. Please advice.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 August 2010 Even though the provisions of Finance Act, 2010, have made "Renting" a service under service tax act.

But in view of the delhi high court's stay order : WP(C)3398/2010 # Home Solutions Retails Ltd Vs UOI, the scene is unclear.

Till the matter is fully decided, nothing can be said with surety.

The basic contention of the petition is the very fact that "Renting an immovable property can not construed as rendering of a service" & the whole case is being fought on this very definition. So, just wait till the final say of the judiciary is over.

But, consequent to the final judiciary order, if the case is decided in the favour of Union Govt, then the service tax may be applicable retrospectively.

But if the case is being decided in the other way, there may not any need for levying service tax at all.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2010 pls note that the residential property have been given on rent.

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