Applicability

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CA Mallikharjun Penala (Querist)
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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

CA S K MISHRA (Expert)
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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

CA Mallikharjun Penala (Querist)
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29 May 2016 Thank you Mishra Ji.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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

CA Mallikharjun Penala (Querist)
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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

CA R SEETHARAMAN (Expert)
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31 May 2016 I thought it is residential accommodation.

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