Whether govt of India is liable to pay the service tax on rent of property ?

Only those rented properties which are used in business or commerce only are liable to service tax.A property given on lease to Government is not used in business or commerce. Moreover, U appear to be a tenant; why do U worry. The tenant is not liable to pay service tax.Click on the link below for details http://allindiantaxes.com/ait-news-99.php http://allindiantaxes.com/ait-news-95.php Service Tax on Commercial Renting has come into force with effect from 1st June 2007 vide Notification No 23/2007-Service Tax dated 22nd May 2007. However, Property Tax amount has been exempted while calculating service tax on commercial renting vide Service Tax Notification No. 24. Further, those landlords whose rent receipts are below Rs 8 Lakh from 1st June 2007 to 31st March 2008 will also be exempt from service tax vide Notification No. 6/2005-Service Tax as amended by Notification No.4/2007-Service Tax subject to the conditions of Notification. Even those whose rental receipts are above Rs 8 lakh will be required to pay service tax only after crossing receipts of Rs 8 Lakh. The scope of “renting of immovable property” under the Finance Act 1994 as amended by the Finance act 2007 ; includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include- (i) renting of immovable property by a religious body or to a religious body; or (ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre; The term“for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings,warehouses, theatres, exhibition halls and multiple-use buildings "taxable service" means any service provided or to be provided to any person, by any other person in relation to renting of immovable property for use in the course or furtherance of business or commerce. “immovable property” includes— (i) building and part of a building, and the land appurtenant thereto; (ii) land incidental to the use of such building or part of a building; (iii) the common or shared 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, but does not include- (a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes; (b) vacant land, whether or not 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. 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 property for use in the course or furtherance of business or commerce(Vide Finance Act 2007)

if the owner is NDMC and the tenent is Central govt of India, where do u come in picture. service tax rate is 12.36%

I do not agree with other learned gentlemen. In this case both Govt. as well as NDMC are covered. Why? a. This is on commercial property and is leviable on every person. Person includes Government agencies and departments also. Already Department of Post is collecting Service Tax on SPEED POST, the same being a courier service. So agrument that Government is not covered do not have any validity anymore. b. Second just becuase GoI has taken the property it does not means that Commercial property no more remains a Commercial prorperty. Government business is a Commercial activity. c. Since now law MANDATES every person to levy and collect service tax, therefore NDMS too is covered. The only execption to above is specific exemption announced by the government. As far as I know there is no exemption given to Government depatments. If there is any, please bring the same to my attention. I will love to increase my knowledge. Regards, CA. Deepak Bholusaria