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“Renting Service under Negative List Regime”


Negative List for Renting


  • Renting of residential dwelling for use as residence


  • Residential dwelling” is clarified as any residential accommodation, but does not include hotel, motel, inn, guest house, camp–site, lodge, house boat, or like places meant for temporary stay.


  • Office cum residence: Bundled service to be bifurcated


  • Renting of Vacant land for use in Agriculture


  • Renting of immovable property
  • By RBI
  • By Government to Non-Business Entity





  • Renting of precincts of a religious place meant for public


  • Renting of commercial places like hotel etc. having declared tariff <1000/ day.


  • Renting of immovable property by or to any “educational institution”


  • Parking Charges to general public [ However leasing space to an entity for providing parking facility is taxable]


  • Property tax paid to local bodies is deductible from gross amount charged.




  • Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.40%, taxable 60%, effective rate : 7.416%


  • No provision for abatement in case of renting of property other than above


  • No cenvat credit of capital goods and Inputs is allowed as if abatement is claimed. However cenvat credit of input services permissible


  • No provision for abatement in case of renting of commercial property


Amnesty Scheme-Renting of immovable property


  • One time penalty waiver


  • Tax and interest as on 06-03-12 paid in full


  • Time available : 6 months [28-11-12] from date of enactment [28-05-12]




  • Though liability to pay service tax on support services provided by government is on service recipient, renting is an exception and government is liable to pay tax on it.


  • Renting of office cum residence: Bundled service and renting of office taxable



More details about Renting