Renting of immovable property under Declared services [Section 66E] :

Renting of all immovable properties is chargeable to service tax. However, the immovable properties which have been specifically covered by the negative list or which are specifically exempt would not be taxable.

Taxability of few renting transactions

S.No.	Renting transaction	Taxability
1	Permitting use of immoveable property for placing vending/ dispensing machines	Chargeable to service tax as permitting usage of space is covered in the definition of renting
2	Allowing erection of a communication tower on a building for consideration
3	Permitting usage of a property for conduct of a marriage or any other social function
4	Renting of land or building for entertainment or sports	Chargeable to service tax as there is no specific exemption.
5	Renting of theatres by owners to film distributors (including under a profitsharing arrangement)	Chargeable to service tax as the arrangement amounts to renting of immovable property.
6	Hotels/restaurants/convention centres letting out their halls, rooms etc. for social, official or business or cultural functions	Covered within the scope of renting of immovable property and would be taxable if other elements of taxability are present.

Renting means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property [Section 65B(41)].