Renting of Immovable Property under service tax law:

 Exclusion aspects:

• ‘Negative list’ services in respect of renting as contained under section 66D
• ‘Mega Exemption in respect of renting as contained in Notification No 25/2012-ST ,dated 20.6.2012
• Property taxes levied and collected by local bodies to be reduced from gross amount charged for renting of such IP.
• In case of hotels ,inns, guest house ,clubs, campsites or other commercial places meant for residential or lodging purposes ,40% of value of taxable service is exempt from service tax with the condition that CENVAT Credit on Inputs and Capital goods will not be admissible.

Other aspects:

Place of provision of service provided directly in relation to an IP shall be the place where the IP is located [Rule- 5]. However, in case provider and receiver of service are located in taxable territory but IP is located outside India ,then place of provision of service shall be location of the recipient of service [Rule-8]