Renting of immovable property

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hemant (Querist)
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19 September 2011 Respected experts
Please guide me in my following query.

Fact
Real estate developer construct a residential cum commercial building.
Now he let out the some unsold portion of commercial as well as residential units.

In this situation whether service tax is calculated on rent income from residential unit or not.
How to calculate service tax

Please reply.

Thanks in advance.

VISHRUT

VISHRUT (Expert)
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19 September 2011 Service tax will be calculated on total value and no bifurcation will be made of the same.

hemant

hemant (Querist)
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19 September 2011 Thanks Vishrut

But further more clarification with any case law if any, required pls help

hanish

hanish (Expert)
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21 September 2011 Hi Hemant,

Explanation 2 to Section 65(105)(zzzz) reads as follows - Explanation 2. - For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce.

Thus service tax would be applicable even on residential portion.

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