Applicability of Service tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 May 2010 I have given my property on rent for running the same as guest house, if service tax is payable on rent?

04 May 2010 What is the purpose behind running the guest house by the tenant. If it is in the course of business or commerce/ ie. for commercial purpose, ST applicable, as per the budget proposal in this year's budget.

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 May 2010 The purpose is commercial but defination under clause 105 zzzz says that it does not include running of hotels used for residential accomodation. please clarify.

04 May 2010 Sir,

I stood corrected. In your case, service tax is not attracted, as it is used for residential accommodation. Rightly pointed by you, it is excluded from the definition of immovable property.

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Querist : Anonymous

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04 May 2010 Thanks for the prompt reply.


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