is applicable S.T. on guest house rent recd?

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This query is : Resolved

sachin (Querist)

14 February 2008 i have client, who have the guest house as prpo.business.
he shows income as rent & misc. income ( food & drinks etc as added service ) provided to guest people recd. from guest house.His income is above Rs. 40 lacs & and he also filed return last year as tax audit. Is this income is liable for service tax ?,whether he apply for service tax reg.?, how to specify the details in invoice if service tax applicable?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

14 February 2008 services in relation to renting of immovable property for use in the course of furtherance if business or commerce. The expresssion renting of immovable property includes renting letting leasing,licensing or other simmilar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include
Buliding used soley for residential purposes and building used for the purposes of accomodation,including hotels,hostels,boardig houses,holiday accomodation,tent camping facilities
if your client maintain client register then it wll not cover under service tax

jegannath G

jegannath G (Expert)

14 February 2008 Renting of immovable property is taxable under service tax if it exeeds more than Rs 4 lacs per annum. Hence , he should apply for the service tax registeration no & raise invoice with in 14 days from the end of the month.

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