“Premium” or “Salami” Value is Exigible to Service Tax under “Renting of Immovable Property”: CESTAT

The CESTAT ruled that premium or salami charges for renting out immovable property are subject to service tax. The case involved a dispute over whether charges collected for leasing properties should be taxed under the service tax regime. The Tribunal clarified that such charges, though typically associated with real estate transactions, are categorized as rental income for service tax purposes and, thus, liable for taxation. The decision is a significant development in the interpretation of rental income under service tax laws, particularly in cases where additional fees are levied by property owners.