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TMI Blogrent of immovable property by societyX X X X Extracts X X X X X X X X Extracts X X X X ..... A charitable religious society registered with Income tax . Has given premises on rent to Bank . Bank is Paying Monthly building rent of ₹ 73000 pm and Generator Rent of ₹ 20000 pm . Total Annual Rs 1116000. Whether liable for service tax. - Reply By Naveed S - The Reply = As per clause 2(k) of the notification no. 25/2012 , charitable activities means activities relating to - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i).... ( ii) advancement of religion or spirituality; Hence, if the said charitable religious society falls under the definition mentioned at (ii) above, then exemption from payment of service tax is available, else liable for payment of service tax. - Reply By Akash Deep - The Reply = Dear Satbir, the situation explained by you is not as simple as understood by my frien d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr.Naveed S. it can be no doubt that income of RS. 1116000/- is not generating for carrying out any charitable activity.had the income been generated from any charitable activity as defined under clause 2(k) of the notification no. 25/2012 dated 20.6.2012 . the income generated from such services would have been exempted from service tax for the reason of being covered under entry 4 of the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 25/2012 dated 20.6.2012 . in this case the subjected income on which applicability of service tax is the issue of this discussion, is generated from not charitable activity but from the activity of renting ogfimmovable and movable property. i am of the view that view taken b7y Mr. Naveed S, in my personal opinion is not correct. In my opinion Amount of ₹ 73000 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to levy of service tax and amount of ₹ 20,000/- may or may not be subject to levy of service tax depending on the fact whether effective control and possession of the generator has been transferred to the bank or not. For detailed opinion and tax planning you cant contact me on 09873463912. for - Reply By Pradeep Khatri - The Reply = Dear Satbir, In our opinion, yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u would have to pay service tax on INR 73000 (after deducting the property tax proportionately) as this income is not accrued from the activities specifically mentioned in the Service Tax Notification. On Income from renting of DG Set depending on the effecting control principle either VAT or Service Tax may be applicable. Regards, YAGAY and SUN (Management and Indirect Tax Consultants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) - Reply By Naveed S - The Reply = Yes, I agree with the above views. The query was misunderstood and based on it the answer was provided. - Reply By Arun Kumar Singh - The Reply = Exempt from service tax if services are fall under notification no. 25/2012-ST. - rent of immovable property by society - Query Started By: - satbir singh wahi Dated:- 3-9-2014 Service Tax - Got 5 Replies - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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