MANU/DSTX/0057/2016

Ministry : Ministry of Finance

Department/Board : Service Tax

Circular No. : 200/10/2016-Service Tax

Date : 06.09.2016

Notification/ Circulars Referred : Notification No. 25/2012-Service Tax dated 20.06.2012 MANU/DSTX/0065/2012

Citing Reference:
Notification No. 25/2012-Service Tax dated 20.06.2012 MANU/DSTX/0065/2012  Referred

To

Principal Chief Commissioners of Customs and Central Excise
(All) Principal Chief Commissioners of Central Excise & Service Tax
(All) Principal Director Generals of Goods and Service Tax/System/CEI Director General of Audit/Tax Payer Services
Principal Commissioners/Commissioners of Customs and Central Excise (All)
Principal Commissioners/Commissioners of Central Excise and Service Tax (All)
Principal Commissioners/Commissioners of Service Tax (All)
Principal Commissioners/Commissioners LTU/Central Excise/Service Tax (Audit)

Madam/ Sir,

Clarification regarding scope of Notification No. 25/2012-Service Tax dated 20.06.2012, Sl. No. 5(a).

I am directed to refer to the above mentioned subject and to say that it has come to notice of the Ministry that difficulties are being faced in interpreting the scope of Notification No. 25/2012-Service Tax dated 20.06.2012, Sl. No. 5(a).

2. The matter has been examined. The said notification exempts services by way of renting of precincts of a religious place meant for general public. 'Religious Place' has been defined in the notification to mean a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation or spirituality. 'General Public', according to the notification, means the body of people at large, sufficiently defined by some common quality of public or impersonal nature. 'Renting' has been defined in the Finance Act, 1994 as allowing, permitting or granting access, entry, occupation, use or any such facility, in any immovable property, with or without the transfer of possession or control of the said immovable property. However, the word 'precincts' appearing in the notification has not been defined and this gives rise to difficulty/disputes in interpreting scope of the said exemption notification.

3. The meaning of the word 'precincts' as given in various dictionaries is as under:-