Service Tax on Residential Property Rental Income

This query is : Resolved

DEEPAK GOYAL (Querist)
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21 July 2010 Can anyone clear me whether the rental income on residential property is taxable or not. Please send me any link where i can see and show to my client.

Thanks

Akhil Agrawal

Akhil Agrawal (Expert)
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21 July 2010 No Service Tax is applicable only on the renting of the Commercial Property

DEEPAK GOYAL

DEEPAK GOYAL (Querist)
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22 July 2010 can you please provide me any link or guideline for this.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 August 2010 “renting of immovable property” includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include —

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre;

Explanation 1.—For the purposes of this clause, “for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings;]*

Explanation 2.— For the removal of doubts, it is hereby declared that for the purposes of this clause “renting of immovable property” includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;

[Explanation 2 inserted vide Finance Bill 2008 w.e.f. 16th May, 2008]