Is Service Tax Applicable when renting a parking spot in a residential complex where I own a flat?

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  1. Arjun Agarwal

    Arjun Agarwal New Member

    I am the owner of a 4 BHK Apartment in a residential complex in Sector 50 of Gurgaon. The Apartment was bought by my father and was later transferred into my name. During the purchase of the apartment, my father had only bought one parking slot (for the car) in the basement parking which is located within the complex. Initially the management did not make a fuss about parking an extra car in the basement despite of having only one parking slot.

    Lately, as the complex still has not been populated, the management has started forcing the owners/tenants (who have 2 cars and own 1 slot) to either buy another parking slot or rent it out at Rs. 5000/month (which is an exorbitant amount).

    Simultaneously, we were informed that "you are liable to pay the basement car parking rent which will sum to INR 15,000.00 plus 14.5% service tax". That is they further demanded the payment to be made quarterly.

    So my question is that is Service Tax applicable on the parking area being rented out within a complex where I myself own an apartment? If yes, why? How does providing parking space deemed to be a service in a residential complex where I am anyway quarterly paying CAM (Common area maintenance) charges on which service tax is anyway applied?

    and if after everything, if it is still justified to levy service tax, why is it 14.5% ?

    Waiting for reply eagerly

    Thanks in Advance

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