Ankit Mehrotra (Assistant Manager Finance) (27 Points)
16 January 2016In case an individual lets out a flat to a company which is in an occupation of subletting parts of such properties to individuals for residential purpose, will the rent charged by the Landlord (individual) to the Company attract service tax?
Mayur Kashinpure
(Student)
(341 Points)
Replied 16 January 2016
| Originally posted by : Ankit Mehrotra | ||
 |
In case an individual lets out a flat to a company which is in an occupation of subletting parts of such properties to individuals for residential purpose, will the rent charged by the Landlord (individual) to the Company attract service tax? |  |
The transaction will attract service tax.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 17 January 2016
There are 2 parts: Original letting out - Could be liable as it is let out for business.
Sub letting for residential purpose - The letting out ( sub letting also) of residentail flat for purpose of residence is not liable to ST. Whether company does it or individual is not important.
However if it were for short stay ( like service aparatment) then there could be a liability if more than Rs.1000/- collected per day. If so then the question of letting out for residential purpose would not be the purpose and it would be for business.
mohd hafeez
(CA FINAL STUDENT)
(88 Points)
Replied 17 January 2016
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