1 / 13

Service tax on Renting

Service tax on Renting. Practical options for Cenvat Credit / Valuation for the landlord and the tenant by s. jaikumar, advocate. Renting of immovable Property. Includes renting, letting, leasing, licencing or other similar arrangements of immovable property

ariana-snider
Download Presentation

Service tax on Renting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Service tax on Renting Practical options for Cenvat Credit / Valuation for the landlord and the tenant by s. jaikumar, advocate

  2. Renting of immovable Property Includes renting, letting, leasing, licencing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include Renting by or to a religious body. Renting to an Educational body, other than commercial coaching center.

  3. Taxable Service F Service provided / to be provided to any person, by any other person in relation to renting of immovable property for use in the course or furtherance of business or commerce

  4. Immovable Property F Building and part thereof and the land appurtenant thereto. F Land incidental to the use of such building or part thereof. F Common or shared areas and facilities relating thereto. • In case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex

  5. Exclusions • Vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes. • Vacant land, whether or not having facilities clearly incidental to the use of such vacant land • Land used for educational, sports, circus, entertainment and parking purposes. • Building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, boarding houses, holiday accommodation, tents, camping facilities

  6. Value of Taxable Service • Gross Rent – Property Taxes

  7. Certain Tips • Be a Joint Owner and claim exemption upto Rs. 8 lakhs. • Status of advances. • What if no rent is taken but a hefty advance is is taken?

  8. Can the rent be split into for the building and furniture / fixtures, etc.? Threat of Business Support Service

  9. Can the expenses like electricity, water, telephone be recovered separately? Threat of Rule 5 of Valuation Rules

  10. Cenvat credit for the landlord. • Major input services - Architect. - Construction service. - Interior Decoration. - Insurance. - Chartered Accountant. - Banking.

  11. Construction of a building was completed in 2006 and service tax charged. can credit of such service tax be taken, after 01.06.2007? Recent LB Decision in Spenta International Ltd Vs CCE 2007 (216) ELT 133 Tri – LB

  12. THANKS chennai - coimbatore - bengaluru - hyderabad - ahmedabad

More Related