Cell sites/RF Antennas atop building terraces – Not excise but Service Tax!
We had carried this capsule in our on 8th February 2008 and understandably the Board in its letter 334/1/2008-TRU dated 29.02.2008 informed thus –
“5.5 Renting of immovable property service:
5.5.1 Use of immovable property is allowed for placing vending/ dispensing machines in malls and other commercial premises and erection of communication towers on buildings. In such cases, there may or may not be transfer of right of possession or control of the immovable property in favour of the person using such property.
5.5.2 Renting of immovable property includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce. Transactions mentioned in para 5.5.1 get covered under the category of other similar arrangement, if not covered under other categories.
5.5.3 It is proposed to clarify by way of removal of doubts that renting of immovable property service includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the immovable property. Field formations may ensure that service tax is collected in all such cases.”
The said “proposal” is by way of insertion of an Explanation numbered ‘Explanation 2’ in clause 65(90)(a) by the Finance Bill, 2008 & which is now a reality as the Bill has been enacted on the 10th May 2008.
Our friendly Netizen reminded us about this TRU letter & wishes to add something more into this list –
The Indian Railways permit shooting of films/documentaries at various railway stations for a fee. These charges collected by the Railways for “Renting out the Railway platforms/stations” runs into lakhs of rupees per year.
The Indian Railways allows “Canteens/food stalls/tea stalls/khomcha’s etc. to be run” on the Railway platforms & the licences for the same are auctioned; allows Book stalls to operate in the Railway premises; allow shoeshine boys to conduct their business on railway premises officially [where do they sit & put up their shoeshine kit although is not pre-determined] & allow Electronic Weighing machines to be installed on railway platforms etc. etc.
We hope that the authorities concerned delve into these too and do the needful!