Service tax applicability

CA S SRINIVAS KAMATH (CA Practice ) (36 Points)

30 October 2015  

Dear Members,

One of my client has given a property on rent to an educational trust. Dfferent door numbers are alloted to two floors of the property. It is mentioned in the agreement that one floor is to be used for hostel purpose by the trust and specific rent for the said floor is also mentioned.

Is service tax applicable on the amount collected on behalf of the floor which is used by the trust for providing hostel facility?? 

As per negative list letting out for residential purpose is not taxable. whether the same can be applied in this scenario as the party to whom we are letting out ie the trust is letting out it to the students.