Applicability
This query is : Resolved
CA Mallikharjun Penala
(Querist)
29 May 2016
Please clarify.
A hospital is providing accommodation to it's doctor consultants and collecting rent from the doctors.
While paying the professional fee for consultation, the hospital paying off net amount (after deduction of rent amount).
Amount of such rent for the whole year exceeds Rs. 10lakhs.
Now the question is whether the hospital is required to pay service tax on such rental income?
CA S K MISHRA
(Expert)
29 May 2016
The liability to discharge the service tax liability on renting of immovable properties is on the service provider. Hence the service tax on such reimbursements is to be collected from the service receiver and is to be deposited by the service provider.
CA Mallikharjun Penala
(Querist)
29 May 2016
Thank you Mishra Ji.
CA R SEETHARAMAN
(Expert)
30 May 2016
Residential accommodation provided by hospital so no service tax applicable. Service tax applicable on rent of commercial building only.
CA Mallikharjun Penala
(Querist)
30 May 2016
Dear Seetharaman Sir,
We are providing accommodation to doctors to provide services to our patients.
In what way we can conclude that accommodation is for residential purpose??
CA R SEETHARAMAN
(Expert)
31 May 2016
I thought it is residential accommodation.
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