Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 29/2012- Service Tax
New Delhi, the 20th June, 2012
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of
section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the
Finance Act), and in supersession of the Government of India in the Ministry of
Finance (Department of Revenue) notification
No. 24/2007-Service Tax, dated the
22nd May, 2007, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i) vide number G.S.R. 370 (E), dated the 22nd May, 2007,
except as respects things done or omitted to be done before such supersession,
the Central Government, on being satisfied that it is necessary in the public
interest so to do, hereby exempts the taxable service of renting of an immovable
property, from so much of the service tax leviable thereon under section 66B of
the said Finance Act, as is in excess of the service tax calculated on a value
which is equivalent to the gross amount charged for renting of such immovable
property less taxes on such property, namely property tax levied and collected
by local bodies:
Provided that any amount such as interest, penalty paid to the local
authority by the service provider on account of delayed payment of property tax
or any other reasons shall not be treated as property tax for the purposes of
deduction from the gross amount charged:
Provided further that wherever the period for which property tax paid is
different from the period for which service tax is paid or payable, property tax
proportionate to the period for which service tax is paid or payable shall be
calculated and the amount so calculated shall be excluded from the gross amount
charged for renting of the immovable property for the said period, for the
purposes of levy of service tax.
Example:
Property tax paid for April to September = Rs. 12,000/-
Rent received for April = Rs. 1, 00,000/-
Service tax payable for April = Rs. 98,000/- (1, 00,000 -12,000/6) *
applicable rate of service tax
2. This notification shall come into force on the 1st day of July, 2012.
(Raj Kumar Digvijay)
Under Secretary to the Government of India
[F.No. 334 /01/2012- TRU]