Is service tax applicable on the rent of hostel collected by non-educational private entity?
Prasad Deshpande (.) (36 Points)
09 November 2013Is service tax applicable on the rent of hostel collected by non-educational private entity?
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 09 November 2013
Dear Mr. Prashad,
Services of Hostels used for residential purposes will be exempt. Assumption there tariff rate is below Rs. 1000 per day.
Prasad Deshpande
(.)
(36 Points)
Replied 09 November 2013
Thanks for reply....but can u pls share the source like any notification/circular?
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 09 November 2013
Dear Prasad,
Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012.
Prasad Deshpande
(.)
(36 Points)
Replied 09 November 2013
but as per my interpretation Entry no 18 of mega exemption notification no. 25/2012-ST dated 20-6-2012 does not include Hostel.
CA. Narottam Kumar Rawat
(Indirect Tax Consultant)
(394 Points)
Replied 09 November 2013
The Word "other commercial places meant for residential or lodging purposes" covers Hostels, bed & breakfasts etc.
CAclubindia
