Taxation - Income TaxQuestion 5639 of 146
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16. ‘Truth is God’, a religious trust u/s 12AA of the Income-tax Act, 1961, provides service by way of renting of premises within the precincts of a religious place which is exempt upto ` ___________.

Options

A` 999 per day
B` 1,000 per day
C` 9,999 per day
D` 10,000 per day (1 Mark) Answer Key Question No. Answer
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Correct Answer

Option C` 9,999 per day

All Options:

  • A` 999 per day
  • B` 1,000 per day
  • C` 9,999 per day
  • D` 10,000 per day (1 Mark) Answer Key Question No. Answer

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Detailed Solution & Explanation

Correct Answer: Option **C** Explanation: Under Notification No. 12/2017-Central Tax (Rate), renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961, is exempt from GST.

However, this exemption does not apply to:
- Renting of rooms where charges are ₹ 1,000 or more per day.
- Renting of premises, community halls, kalyanmandapam, open area, or similar spaces where charges are ₹ 10,000 or more per day.
- Renting of shops or other spaces for business or commerce where charges are ₹ 10,000 or more per month.

Therefore, the renting of community halls, premises, kalyanmandapams, open areas, etc., remains exempt if the charges are less than ₹ 10,000 per day, which means the exemption applies up to ₹ 9,999 per day.

Hence, **Option C** is the correct answer.

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