Taxability on rental income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2012 Sir, pl clarify whether renting of property will attract the service tax or not? if so who is to bear this. Landlord or tenant?
Is there any differentiation between residential property and commercial property?

pl clarify the following too

Will the service tax applicable to the services of law firm (practicing advocates)?

Pratik Pankaj Shah

Pratik Pankaj Shah (Expert)
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18 July 2012 Dear .....,

The service tax regime has been changed in entirety now. There is no more category of taxable services provided under section 65(105) of the finance act. The same section has been omitted by the Finance Act, 2012.
Hereinafter, all the services which are rendered for a consideration except mentioned in the negative list and mega exemption list.

Therefore, renting of immovable property is liable for service tax as mentioned in the declared services.

Service tax is equally applicable to advocate. Also, reverse charge mechanism is also applicable to them.