27 February 2008
an immovable property which is letout wholly for resident purpose is exempt from service tax so in my opinion it is not liable to service tax
28 February 2008
Further subletting is an activity performed by the company and not by the lessor.
The lessor is letting out the premise to a company who is involved in business and commerce activity as such service tax will be charged by the lessor.
In your case it is being let out to an Individual who is an employee.
You can very well take the credit as it is in use for business and commerce, though it can be debated as no service is provided from the residence, unless you are able to establish the facts.
28 February 2008
Once the property is let out to a company which is involved in the business and commerce it shall be treated as commercial use even if it is let out to an employee for residential purposes. Therefore being let out for commercial purposes service tax will be payable.
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