Hi. My Client collects revenue from Parking services. they own the premises and charge parking tariff from the visitors/ customers. Is service tax applicable on Parking Revenue, if yes then under which category..
thanks in advance....
Anil (Manager Finance) (40 Points)
29 December 2009Hi. My Client collects revenue from Parking services. they own the premises and charge parking tariff from the visitors/ customers. Is service tax applicable on Parking Revenue, if yes then under which category..
thanks in advance....
CA Jayesh Gokalgandhi
(CA in Industry)
(126 Points)
Replied 29 December 2009
Yes, it is chargeable under the head "Renting of Immovable property"
Anil
(Manager Finance)
(40 Points)
Replied 29 December 2009
Mr. Jayesh, i referred the definition of Immovable Property under Service Tax. That excludes land used for educational, sports and parking purpose. Will this do away service tax applicability on parking Income.
CA Jayesh Gokalgandhi
(CA in Industry)
(126 Points)
Replied 29 December 2009
If it is a vacant land that is used for parking of vehicals then it may be exempt... However if the premises has building / facilites and parking charges are incidental to this.. then parking charges may fall under this catagory..
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 30 December 2009
PARKING SERVICE IS STILL NOT ASSIGNED AS SERVICE IN THE ACT 65(105).
SIMILAR SERVICE IS RENTING OF IMMOVABLE PROPERTY
BUT THIS SERVICE IS ALSO FACING THE LEGAL SUIT, HIGH COURT DECLAIRED THAT
THIS BUSINESS DOEST NOT FALL UNDER SERVICE
BETTER TO NOT TO COLLECT AND BURDEN THE CUSTOMERS POCKET
.
Anil
(Manager Finance)
(40 Points)
Replied 31 December 2009
Thanks Jayesh and Eklabya.
Do you have the legal suit details. if yes, can you post the case for my help.
wish you every body a Great New Year ahead ...
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