Legal Question in Tax Law in India

Re: Re : SERVICE TAX

Rent received from any kind of commercial letting or residential letting of Immovable property attracts Service Tax.Please read the following:

�Renting of Immovable Property� includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include �

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre;

Explanation 1.�For the purposes of this clause, �for use in the course or furtherance of business or commerce� includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings;]*

Explanation 2.� For the removal of doubts, it is hereby declared that for the purposes of this clause �renting of immovable property� includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;

[Explanation 2 inserted vide Finance Bill 2008 w.e.f. 16th May, 2008]

Re: Re : SERVICE TAX

Yes the landlord is liable to pay tax.