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Service Tax on Renting of Immovable Property

sachin gupta (student) (64 Points)

12 July 2010

as per budget Service Tax on Renting of Immovable Property is applicable with effect from 1.6.2007 .

any petition file in supreme court.or any stay provide by supreme court

one of the vendor charged service tax on renting of property is it correct ?

Thanks to All

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2 Replies

Harsha (Chartered Accountant CS (Final)) (227 Points)
Replied 15 July 2010

Yes, the levy of service tax on renting of immovable property is correct.

As per the budget amendments, the word "in relation to " deleted in the defintion of service. Service tax will be attracted irrespective of HOme solutions case

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Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 15 July 2010

If your property is used solely for residential purpose or non-commercial purposes then you do not need to pay any service tax.

The budget 2009-10 proposed the collection of the tax with retrospective i.e. from 01.06.2007 on renting of immovable property for commercial purposes. But this has been stayed by the Andhra Pradesh High Court.