9911796707
TMI Blog2013 (12) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... s firstly the shop owners who own their shops in the mall and the secondly the visitors who visit the mall for shopping, food, movie, leisure etc. Property taken on rent if used for business or commerce purposes is Prima facie liable to service tax on the rental income. In the present case we notice that out of total income of ₹ 8,42,40,810/- during the period 2007-08 to 2009-10 the monthly parking income amounting to ₹ 22,51,755/- only pertains to those clients who are having shops in the mall and similarly out of total income parking of ₹ 3,88,45,204/- in year 2010-11 amount of ₹ 9,63,645/- only pertains to the monthly parking income in respect of parking space provided to the shop owners. We therefore are of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntenance or Repair Services , Renting of Immovable Property Services and Advertising Agency Service falling under different taxable services of the Finance Act. On the checking of the records of the applicant by the officers of the services Commissionrate it was found that applicant is the owner of Select Citywalk and applicant has received income under the head of parking income during the period 2007-2008 to 2010-2011 and treating the parking income non-taxable the applicant has not paid the service tax on this amount under the taxable service of Renting of Immovable Property Services. Further it was also observed by the audit that the applicant has availed the Cenvat Credit of service tax paid on the processing charges amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for furtherance of, business or commerce. Explanation 1. - For the purposes of this sub-clause, immovable property includes- (i) Building an part of building and the land appurtenant thereto; (ii) Land incidental to the use of such building or part of building; (iii) The common or share areas and facilities relating thereto; and (iv) In case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex or estate, (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land, whether or no having facilities clearly incidental to the use of such vacant land; (c) land used for educational, sports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not include- (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land, whether or no having facilities clearly incidental to the use of such vacant land; (c) land used for educational, sports, circus, entertainment and parking purposes; and (d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities. Explanation 2. -For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided to the shop owners. We therefore are of prima facie view that service tax is payable on this parking income pertaining to the parking service provided to shop owners who own shops in the mall. 6. We note that for the construction of mall the applicant has taken loan which was converted into corporate loan in February 2008 and bank charged processing charge for such conversion of loan and the applicant has availed the Cenvat Credit amounting to Rs. 12,17,460/- on such loan processing charges. We find that Cenvat Credit of processing of loan taken by the construction of mall which is immovable property is prima facie not available. Applicant does not have a strong case for waiver of pre-deposit in respect of Cenvat Credit availed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
