Service Tax Exemption on renting of precincts of a religious place-Reg.

Vide notification No. 40/2016-Service Tax , Exemption on renting of precincts of a religious place meant for general public is been restricted to only charitable or religious trust under section 12AA of the Income-tax Act, 1961 or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the Income-tax Act.

The Central Government vide Notification No. 40/2016-Service Tax, Dated: September 6, 2016 has amended Mega Exemption Notification No. 25/2012-Service tax dated June 20, 2012 by elaborating existing entry 5(a) to grant service tax exemption to services by a person by way of “renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the Income-tax Act; or.”

Further, Central Government vide Circular No. 200/10/2016-Service Tax, Dated: September 6, 2016 has also clarified the meaning of the term “precincts” and provided that it should not be interpreted restrictively but shall include all immovable property of the religious place located within the outer boundary walls of the complex (of buildings and facilities) in which the religious place is located. The immovable property located in the immediate vicinity and surrounding of the religious place and owned by the religious place or under the same management as the religious place, may be considered as being located in the precincts of the religious place and would be eligible for the benefit of exemption under Notification No. 25/2012-Service Tax, Sl. No. 5(a) dated 20.6.2012.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 40/2016-Service Tax

New Delhi, the 6^th September, 2016

GSR. 857(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 25/2012-Service Tax, dated the 20^th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub­section (i) vide number G.S.R. 467 (E), dated the 20^th June, 2012, namely:-

In the said notification, in the opening paragraph, in entry 5, for clause (a), the following clause shall be substituted, namely:-

“(a) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961(hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the Income-tax Act; or”

[F. No.3354/45/2016 -TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary by notification No. 25/2012 – Service Tax, dated the 20^th June, 2012, vide number G.S.R. 467 (E), dated the 20^th June, 2012 and last amended by notification No.39/2016 – Service Tax, dated the 2^nd September, 2016 vide number G.S.R. 850(E), dated the 2^nd September, 2016.

Related Circular- Circular No. 200/10/2016-Service Tax Dated: 6^th September, 2016