No service tax is to be levied on renting immovable property when sharing profits

Hotel Shreelekha Regency Limited Vs Commissioner of GST & Central Excise (CESTAT Chennai) The CESTAT, Chennai in M/S. Hotel Shreelekha Regency Limited [Service Tax Appeal No. 40073 of 2014 dated July 14, 2023] set aside the order demanding service tax on rental property and held that, income received from rent by assessee is not subject to levy of service tax. Facts: M/s. Hotel Shreelekha Regency Ltd (“the Appellant”) is engaged in hotel business. The Appellant was running a three-star hotel in the name of Hotel Shreelekha Regency since May 10, 2000. The Appellant entered into an agree...