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
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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