service tax on renting to government

mukundasy (manager) (97 Points)

25 May 2009  

Dear All,

I got to know from the forum that we have to levy VAT for the hiring of equipments even if it is rented for Government departments. Thanks for the same.

My other doubt is that whether we should collect the service tax on the rent of immovable property if it is rented to Government departments. I had two queries in this case. First of all there is a circular or notification or even a inter office memo dated 17 December 2007 stating that we need not collect the service tax on the renting of immovable property to Government which I am not able to get it. Can I get it?.                       My second query is relating to the striking down of service tax on rent from immovable property which was passed by the Delhi cout. Is it applicable to the whole of India and is it that we need not collect service tax from the tenants until a proper decision is taken by the Government in this issue.

With Regards,

Mukunda