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7 services under tax net from 1st
May, 24th 2007

Cost of commercial renting and a host of other services such as designing, works contract, mining of minerals, oil or gas, asset management and telecommunications is set to go up from June 1.

The government on Tuesday notified levy of service tax on the seven new services brought under tax net in Budget 2007. The government has, however, given marginal relief for renting services. Property tax paid on immovable property is specifically excluded from the levy of service tax. This means the tax is payable on the rental amount received minus the actual amount of property tax paid.

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