Chapter 24

Motor vehicle parking to general public

 

Effective date:

(1st July, 2012)

Scope of Exempt Service –

Services by way of vehicle parking to general public excluding leasing of space to an entity for providing such parking facility.

Meanings & Definitions:

general public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature;

 

(See Notification no. 25/2012 dated 20.06.2012, effective from 01.07.2012)

 

Clarification by the Board

(Taxation Guide – Guidance Note – 7 – Exemptions dated 20.06.2012)

7.11.7 I have taken on rent a piece of vacant land from its owner. The land will be used for providing the facility of vehicles parking on payment. What is my service tax liability?

You are not required to pay tax on providing the facility of vehicle parking to general public. However, if you are providing the facility of parking of vehicles to a car dealer, you are be required to pay tax as parking facility is not for general public. Moreover, land owner is liable to pay service tax on renting of his land to you.”