Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post - More rent on commercial property from today

John · 01-06-07

Rents on commercial properties and six other services will go up from Friday with the coming into effect of service tax levied by the government in this budget.

The service tax of 12.36%, including 3% education cess, will apply on rents of all properties used for business and commerce with effect from June 1. In addition to renting of immovable property, service tax will also come into effect on six other services.

These include telecom service; mining of mineral, oil or gas; works contract; development and supply of content; asset management; and design services.

The first instalment of service tax will have to be paid by July 5. Service tax would not apply on rents of residential premises and properties rented for educational, agricultural and recreational purposes. However, composite properties used for residential as well as commercial purposes will fall within the ambit of the service tax.

01-06-07	#1
John Member Join Date: Jan 2007 Posts: 120 Thanks: 0 Thanked 0 Times in 0 Posts	More rent on commercial property from today Rents on commercial properties and six other services will go up from Friday with the coming into effect of service tax levied by the government in this budget. The service tax of 12.36%, including 3% education cess, will apply on rents of all properties used for business and commerce with effect from June 1. In addition to renting of immovable property, service tax will also come into effect on six other services. These include telecom service; mining of mineral, oil or gas; works contract; development and supply of content; asset management; and design services. The first instalment of service tax will have to be paid by July 5. Service tax would not apply on rents of residential premises and properties rented for educational, agricultural and recreational purposes. However, composite properties used for residential as well as commercial purposes will fall within the ambit of the service tax.