Guide to Service Tax on Renting of Immovable Property & Works Contract

Under the amendments made to the Finance Act, 2007, service tax has been introduced inter alia on services rendered in the course of execution of works contracts as well as on services rendered in relation to renting of immovable property used in the course of business or commerce. These are relatively two new levies which are effective from 1-6-2007. These two levies would affect a large number of persons who are involved in one way or the other in these two important services.

In order to analyze the implications of service tax levy on these two important services, this handy edition has been brought out. The idea is to enable the lessors of immovable property as well as providers of works contract services to know the implications and ramifications of the tax on these two services. What is works contract, how to work out the value of taxable service in a works contract, the composition scheme for payment of service tax in a works contract etc. have been explained with examples. Similarly, in the case of renting of immovable property for business or commerce, the scope and extent of coverage of the service tax, nature of properties covered, value of taxable service, abatements while arriving at the value etc. have been explained in an easy and understandable manner with examples.

The other provisions of the service tax law regarding registration, central­ized registration, exemption upto Rs.8 lakhs in a financial year for small service providers, service tax credit, billing for payment of service tax etc. have also been explained in separate compact chapters.

We do hope that this handy edition would help understand the true scope, coverage and ambit of the service tax on works contract and renting of immov­able property for business or commercial purposes. The presentation and style of writing has been kept very simple so as to conduce to easy understanding.

We are extremely grateful to Mr.R. A. Garg of Commercial Law Publishers (India) Pvt. Ltd., who has shown immense interest and enthusiasm in bringing out this concise publication. We are also thankful to Mr. E.G.K Menon and Mr. R. Sampath of our office for their assistance in bringing out the manuscript for this publication on time.

We once again value suggestions from the readers for further improving the quality and content of this book.

Chapter 1--Evolution of Service Tax Levy--An overview

Chapter 2--General Exemptions Applicable to service provider

Chapter 3--Works Contract Service

Chapter 4--Valuation of Works Contract Service

Chapter 5--Works Contract Services--Other Important Aspects

Chapter 6--Renting of Immovable Property for Business of Commerce

Chapter 7--Valuation of Taxable service-Renting of immovable property

Chapter 8--Registration, Billing, Payment of Service Tax and other Connected matters

Chapter 9--Service Tax Credit Scheme

Chapter 10--Input Service Distributor--Object, Purpose and Procedure

Chapter 11--Filing of Service tax Returns

Chapter 12--Other Provisions Regarding Assessment/Recovery of Tax etc.