Applicability of service tax on leasing /renting of buildings to Government -regarding - Service Tax - F.No. 137/280/2007-CX-4

Applicability of service tax on leasing /renting of buildings to Government -regarding F.No. 137/280/2007-CX-4 Government of India Ministry of Finance, Department of Revenue Central Board of Excise Cusotms Dated : December 17, 2007 To, The Commissioner of Central Excise, Thane-1 4th Floor, Navabharat Chambers, Ranade Road, Dadar (West), Mumbai-400028 Subject - Applicability of service tax on leasing /renting of buildings to Government -regarding Please refer to your letter F.No. CEX/Adm(22) 2007/Th-1/07 dt. 6.09.2007, on the above subject. The matter has been examined. "Renting of immovable property" has been brought under tax net w.e.f. 1/06/2007. This service includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce. If the rented immovable property is being used for furtherance of business, it is liable to services tax . It does not matter whether the Government or private parties rent it. Having Central Excise office does not fall under furtherance of business and commerce as it is an activity of performing statutory functions by a public authority and not an activity of business or commerce. Therefore, it is not liable to pay service tax under taxable service category of "renting of immovable property" Yours faithfully, (Gautam Bhattacharya) Commissioner (ST) Central Board of Excise Customs