This is with reference to the Article
titled as “Renting of Immovable Property Service” published on 20th September
2013.
The Article has been written in a casual manner without specifying that whether it is applicable to Positive List Regime or Negative List regime. I have tried to supplement following information for the benefit of readers.
The requirement of renting of immovable property FOR USE IN COURSE OF FURTHERANCE OF BUSINESS OR COMMERCE, as defined at Section 65(90a) was prevailed upto 30th June, 2012. Thereafter, Renting of immovable property has been included u/s 6E(a) as ‘declared service’ in which there are no words like “FOR USE IN COURSE OF FURTHERANCE OF BUSINESS OR COMMERCE”. However, certain services like renting of residential dwelling and renting of vacant agricultural land have been specified in Negative List. Whereas, services of renting of immovable property to educational institution have been included in mega exemption Notification. Two major differences between the position under Positive List regime and Negative List regime are as under:
(1) Renting of immovable property BY a religious body or TO a religious body was excluded from the definition of the term “renting of immovable property” as defined at Section 65(90a) and prevailed upto 30th June, 2012. With effect from 1st July, 2012, renting of ONLY PRECINCTS OF A REGLIGIOUS PLACE MEANT FOR GENERAL PUBLIC is exempt under mega exemption Notification No. 25/2012-ST (Sl.No.5). Other renting services by religious bodies such as renting of shops and offices, which are not located within precincts of a religious place, became taxable w.e.f. 1st July, 2012 (subject to threshold exemption of Rs.10 lakh). Similarly, renting of immovable property service provided to religious bodies also became taxable, if it is not used as residential dwelling.
(2) Renting of immovable property to an educational body, other than commercial training or coaching centre, was kept outside the ambit of the term “renting of immovable property” as defined at Section 65(90a) and prevailed upto 30th June, 2012. During the period from 1st July, 2012 to 31st March, 2013 renting of immovable property services provided TO or BY educational institution in respect of education was exempt from service tax [Sl.No. 9 of mega exemption Notification]. With effect from 1st April, 2013, the words “provided to or by” have been substituted with the words “provided to”, therefore, renting of immovable property service (other than residential dwelling) provided by education institutions becomes taxable w.e.f. 1st April, 2013 [Notification No. 3/2013-ST dated 1.3.2013].
The Article has been written in a casual manner without specifying that whether it is applicable to Positive List Regime or Negative List regime. I have tried to supplement following information for the benefit of readers.
The requirement of renting of immovable property FOR USE IN COURSE OF FURTHERANCE OF BUSINESS OR COMMERCE, as defined at Section 65(90a) was prevailed upto 30th June, 2012. Thereafter, Renting of immovable property has been included u/s 6E(a) as ‘declared service’ in which there are no words like “FOR USE IN COURSE OF FURTHERANCE OF BUSINESS OR COMMERCE”. However, certain services like renting of residential dwelling and renting of vacant agricultural land have been specified in Negative List. Whereas, services of renting of immovable property to educational institution have been included in mega exemption Notification. Two major differences between the position under Positive List regime and Negative List regime are as under:
(1) Renting of immovable property BY a religious body or TO a religious body was excluded from the definition of the term “renting of immovable property” as defined at Section 65(90a) and prevailed upto 30th June, 2012. With effect from 1st July, 2012, renting of ONLY PRECINCTS OF A REGLIGIOUS PLACE MEANT FOR GENERAL PUBLIC is exempt under mega exemption Notification No. 25/2012-ST (Sl.No.5). Other renting services by religious bodies such as renting of shops and offices, which are not located within precincts of a religious place, became taxable w.e.f. 1st July, 2012 (subject to threshold exemption of Rs.10 lakh). Similarly, renting of immovable property service provided to religious bodies also became taxable, if it is not used as residential dwelling.
(2) Renting of immovable property to an educational body, other than commercial training or coaching centre, was kept outside the ambit of the term “renting of immovable property” as defined at Section 65(90a) and prevailed upto 30th June, 2012. During the period from 1st July, 2012 to 31st March, 2013 renting of immovable property services provided TO or BY educational institution in respect of education was exempt from service tax [Sl.No. 9 of mega exemption Notification]. With effect from 1st April, 2013, the words “provided to or by” have been substituted with the words “provided to”, therefore, renting of immovable property service (other than residential dwelling) provided by education institutions becomes taxable w.e.f. 1st April, 2013 [Notification No. 3/2013-ST dated 1.3.2013].
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