Clarification on
Payment of Service Tax on rent payable by Central/State Government Departments
Trade
Notice No. 47/ST/2012
Date: 31-10-2012
It
is to bring to the notice of all trade associations and stake holders that
Clarification has been sought whether Service Tax is payable on rent paid by
them to various building owners who has given the buildings on rent to Govt. Departments for office purpose.
In
this connection it is clarified that w.e.f. 1-7-2012, Service Tax is payable by
landlords/property owners on rent received by them for buildings
given on rent to such
organizations like State Govt./Central Govt. Offices, even though the said
organizations are non-commercial organizations.
This
clarification is based on legal provisions that Section 66D of the Finance Act,
1994 (Negative List) as well as Notification 25/2012-Service
Tax, dated 20-6-2012, do not provide any exemption for such activities.
Hence Service Tax is payable on rent paid by
Central Govt. /State Govt. /Local Authorities for office buildings taken by them on rent.
Regards
CA.
Mona Singhal
Partner
Arpit
Gupta & Associates
Chartered
Accountants
701,
Nirmal Tower,
26,
Barakhamba Road,
Connaught
Place, Delhi-110001
Mobile:-
+91-9873082769
No comments:
Post a Comment