service tax on rented property

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GEETA BHAGWAT (Querist)
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03 December 2007 please give me detailed information about service tax on commercial rented property along with circular number?

GEETA BHAGWAT

GEETA BHAGWAT (Querist)
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03 December 2007 6

R.V.RAO

R.V.RAO (Expert)
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03 December 2007 THE GOVT. OF INDIA BUDGET NOTIFICATION IS GIVEN BELOW ABOUT AMENDS TO SERVICE TAX ACT , ALSO MENTIONING Notification No.23/2007-Service Tax dated 22.05.07 IN WHICH RENTING OF IMMOV. PROPERTY IS BROUGHT UNDER SERVICE TAX ACT WEF 01-06-07
among total 7 services newly brought under serv. tax .

F. No. B1/16/2007-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit

*****

New Delhi, the 22nd May, 2007

To,

Director General (All)
Chief Commissioner of Central Excise (All)
Chief Commissioner of Central Excise & Customs (All)
Commissioners of Service Tax (All)
Commissioners of Central Excise & Customs (All)
Madam / Sir,
Subject: Post Budget 2007-08 notifications to give effect to the provisions of the Finance Act, 2007 - regarding.

The Finance Bill, 2007 received the assent of the President of India on the 11th May, 2007 and the corresponding Act is published in the Gazette of India dated 12th May, 2007 as Act No.22 of 2007.

2. Certain provisions relating to the levy of service tax in the Finance Act, 2007 shall come into force from a date to be notified. For this purpose, notifications No.23/2007 to 32/2007-Service Tax, all dated 22nd May, 2007 have been issued.

3. Seven services which are specifically mentioned in the category of taxable services and amendments made relating to existing taxable services shall come into effect from the 1st June, 2007. In other words, changes made in the Budget 2007-08 relating to scope and coverage of taxable services will be effective from 01.06.07 [Notification No.23/2007-Service Tax dated 22.05.07].

4. Section 65 defines taxable services and various terms used in relation to taxable services. Section 66 is the charging section and provides for levy of service tax on taxable services. These two sections have been amended in the Finance Act, 2007 and these amendments shall come into effect from 01.06.07 [Notification No.23/2007-Service Tax dated 22.05.07].

5. Seven services which are specifically mentioned in the category of taxable services are:

(i) Service provided by a telegraph authority in relation to telecommunication service [sub-clause (zzzx) of section 65(105)];

(ii) Service provided in relation to mining of mineral, oil or gas [sub-clause (zzzy) of section 65(105)];

(iii) Service provided in relation to renting of immovable property for use in the course or furtherance of business or commerce [sub-clause (zzzz) of section 65(105)];

(iv) Service provided in relation to the execution of a works contract [sub-clause (zzzza) of section 65(105)];

(v) Service provided in relation to development and supply of content for use in telecom services, advertising agency services and on-line information and database access or retrieval services [sub-clause (zzzzb) of section 65(105)];

(vi) Service provided by any person, except a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern, in relation to asset management including portfolio management and all forms of fund management [sub-clause (zzzzc) of section 65(105)]; and

(vii) Service provided in relation to design services [sub-clause (zzzzd) of section 65(105)].

R.V.RAO

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