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By :
Ranganath AAGJ
student
[ Scorecard : 137]
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ON : 5/13/2008 4:02:08 PM
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hi all,
I wanted to just know whether service tax is applicable on renting of service apartments. The apartments are being rented out to companies on daily and monthly basis. Just let me know whether it comes under " service tax on renting of immovable property"
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By :
Shekar
Article (CA FINAL)
[ Scorecard : 873]
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ON : 5/13/2008 5:24:34 PM
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Yes...Service tax is applicable..
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By :
Deepak Sugandhi
Chartered Accountant
[ Scorecard : 19]
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ON : 5/13/2008 7:08:30 PM
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No. Please refer Service Tax by S S Gupta May 2007 Edn. page 1019-1020.
Certain properties are excluded;
(d) building used solely for residential purposes & buildings used for the purpose of accomodation, including hotels, hostels, boarding houses, holiday, accomodation, tents, camping facilities.
Hence I feel service apartments are exempt.
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By :
M.G.KOTRESH
ADVOCATE & TAX CONSULTANT
[ Scorecard : 152]
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ON : 5/19/2008 3:42:32 PM
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The use of the building is for commercial purpose and not residential, eventhough the person occupying the room will use it for residential use. Therefore, the service tax is applicable on the landlord owning the building for having rented it for commercial use. In most cases the providers of service apartments have taken the premises for rent. The service tax is on the landlord.
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By :
Deepak Sugandhi
Chartered Accountant
[ Scorecard : 19]
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ON : 5/19/2008 4:36:08 PM
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How different is it from a Hotel or boarding? Service Apartment is type of a Hotel, hence deserves same treatment as a hotel.
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