Service Tax on Rent paid to Lessor

RANJIT (MANAGER - ACCOUNTS) (84 Points)

19 January 2009  

Will rent paid by one Charitable Trust to Another Charitable Trust attract Service Tax? Rent paid is Rs.1 Lakh per month for building owned by the Lessor who has exemption u/s.80G for donations received. The Lessee does manufacturing activity in the building. Are both the Trusts liable to be registered under the Service Tax Act?