(a) whether Government had taken a decision to levy Service Tax on rental income of
immovable properties of Local Self Government Institutions;
(b) if so, the quantum of such tax collected so far, State-wise;
(c) whether some States have objected to the collection of such taxes;and
(d) if so, the reaction of Government thereto?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) Renting of immovable property, whether or not owned by Local Self Government, for use
in the course or furtherance of business or commerce,is leviable to service tax with effect
from 01.06.07.
(b) Collection of revenue from service tax State-wise for individual services is not collected
and compiled.
(c) No State Government has objected levy of service tax on renting of immovable property.
(d) In view of (c) above, does not arise.