sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
 How RBI dealt with the crisis amid tensions with FinMin
 Pay tax on this PF account withdrawal Income tax return (ITR) filinga
 Seeks to make amendments (Ninth Amendment, 2018) to the CGST Rules, 2017.
 How govt is dealing with tax evasion, corporate fraud
 How to check income tax return (ITR) status
 Second instalment of advance tax due on 15 September
 Missed the deadline for filing India ITR? Here is what you can do
 Last date for filing GST annual return is December 31
 How insurance policies help you save tax
  How to check your status online Income tax refund

Service tax relief on leased property for business likely
May, 02nd 2007

The finance ministry may reduce the service tax burden for leasing of property for commercial use. The ministry is likely to do so with a deduction of about 25% from rents for repair and maintenance work while calculating the base value for the tax.

A notification to this effect is likely to be issued by the Central Board of Excise and Customs once the Finance Bill is passed by both Houses of Parliament.

Finance minister P Chidambarams 2007-08 Budget has introduced a proposal to levy service tax at a rate of 12.36% on rental of immovable property used for commercial ends.

But the proposal does not cover residential property, vacant land for agriculture, land for sports-related activities, entertainment and car parking, and immovable property for educational or religious use.

The move has drawn criticism and protests from sections of industry, with many even questioning the validity of the decision to consider leasing of property as a service.

The ministry may cut about 25% from rents for repair and maintenance
Proposal does not cover residential property, vacant land for agriculture, land for sports-related activities, etc
 
But the finance ministry has stuck to it stand that leasing of property is a service and, therefore, be brought in the ambit of service tax.

The decision is expected to hit corporates, banks, multinationals, malls, restaurants, BPOs, IT companies and multiplexes the most.

At present, most of these organisations, especially BPOs, only lease property to carry out their businesses.

Real estate agents, too, are not very happy with the proposal as they feel the move would only lead to higher rents. The current real estate boom and a lack of commercial space have combined to already trigger a rise in rents.

Service tax, realtors say, will only be an extra burden and jack up rents further.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions