Service Tax exemption on land lease

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No:CLE/HO/Pol/Circular/2016

October 21, 2016

Members of the Council,

 

Sub : Service Tax exemption

Dear Sir,

The Central Board of Excise & Customs has issued a Service Tax Notification No.41/2016-ST dated 22nd Sept 2016 stating the following.

Taxable service provide by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots is exempted from some much of service tax leviable thereon under section 66B of the said Act, as is leviable on the one time upgrond amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

Members may kindly note the above.

Thanks & regards,

R.Ramesh Kumar
Executive Director

 

Service Tax Circular 41

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