Service provide to nursing house
This query is : Resolved
24 August 2015
If assessee leased a house property to nursing house, whether he is liable for service tax or exempt from service tax because of health care services
plz revert me
plz revert me
CMA MALHAR BEHERA
(Expert)
24 August 2015
As per section 65(105) (zzzzo) service tax is applicable .
24 August 2015
so sir,
as per you assessee can collect service tax from nursing house and nursing house is liable to pay to assessee.
Could you please give a link of such provision
as per you assessee can collect service tax from nursing house and nursing house is liable to pay to assessee.
Could you please give a link of such provision
23 July 2025
Your question relates to whether **leasing of house property to a nursing home** (providing healthcare services) is liable to **Service Tax**, and if so, under which provision. Let's clarify this step-by-step.
---
## 🔍 **Scenario (as of 2015)**:
* An individual (**assessee**) has **leased out a residential or commercial property** to a **nursing home**.
* The nursing home provides **healthcare services**, which are generally **exempt from service tax**.
* The question is whether the **rent received by the assessee is taxable under service tax laws**.
---
## ✅ **Answer**:
Yes, the **renting of immovable property for business or commercial purposes** (including to a nursing home) **is a taxable service**, and **service tax is applicable**.
### 📜 **Legal Basis:**
* As per **Section 65(105)(zzzz)** of the **Finance Act, 1994**:
> “Taxable service” includes **renting of immovable property for use in the course or furtherance of business or commerce**.
* The service tax was applicable on such **renting of property**, regardless of whether the lessee (here, the **nursing home**) is engaged in exempt activities (like healthcare).
---
### ❌ Exemption Does NOT Apply:
* Although **healthcare services themselves are exempt**, the **renting of the property** to a healthcare provider is **not exempt** — because the service being provided by the assessee is **“renting of immovable property,”** not healthcare.
---
### 💡 Who Pays the Tax?
* **Service tax is payable by the landlord (assessee)**.
* The landlord **may collect service tax** from the tenant (nursing home), as per contract terms.
---
### 🔗 **Reference Link to CBEC (Now CBIC) and Relevant Notification:**
Since CBEC has been restructured into **CBIC**, old links may not work. However, you can refer to archived versions or use this official government portal for verification:
* 🔗 [CBIC Service Tax Notifications Archive](https://taxinformation.cbic.gov.in/view-pdf/1009332/ENG/Notifications)
* ✅ Refer: **Section 65(105)(zzzz)** of Finance Act, 1994
* Also see: **Notification No. 24/2007-ST dated 22.05.2007**, and various CBEC circulars.
---
### 📌 Summary:
| Issue | Status |
| --------------------------------------- | ---------------------------------------------- |
| Renting to nursing home | **Taxable as “renting of immovable property”** |
| Service Tax applicable? | **Yes** (under Section 65(105)(zzzz)) |
| Can assessee collect from nursing home? | **Yes**, if contractually agreed |
| Is healthcare exemption applicable? | **No**, not to landlord/renting |
---
Let me know if you'd like a short legal summary in PDF or printable form.
---
## 🔍 **Scenario (as of 2015)**:
* An individual (**assessee**) has **leased out a residential or commercial property** to a **nursing home**.
* The nursing home provides **healthcare services**, which are generally **exempt from service tax**.
* The question is whether the **rent received by the assessee is taxable under service tax laws**.
---
## ✅ **Answer**:
Yes, the **renting of immovable property for business or commercial purposes** (including to a nursing home) **is a taxable service**, and **service tax is applicable**.
### 📜 **Legal Basis:**
* As per **Section 65(105)(zzzz)** of the **Finance Act, 1994**:
> “Taxable service” includes **renting of immovable property for use in the course or furtherance of business or commerce**.
* The service tax was applicable on such **renting of property**, regardless of whether the lessee (here, the **nursing home**) is engaged in exempt activities (like healthcare).
---
### ❌ Exemption Does NOT Apply:
* Although **healthcare services themselves are exempt**, the **renting of the property** to a healthcare provider is **not exempt** — because the service being provided by the assessee is **“renting of immovable property,”** not healthcare.
---
### 💡 Who Pays the Tax?
* **Service tax is payable by the landlord (assessee)**.
* The landlord **may collect service tax** from the tenant (nursing home), as per contract terms.
---
### 🔗 **Reference Link to CBEC (Now CBIC) and Relevant Notification:**
Since CBEC has been restructured into **CBIC**, old links may not work. However, you can refer to archived versions or use this official government portal for verification:
* 🔗 [CBIC Service Tax Notifications Archive](https://taxinformation.cbic.gov.in/view-pdf/1009332/ENG/Notifications)
* ✅ Refer: **Section 65(105)(zzzz)** of Finance Act, 1994
* Also see: **Notification No. 24/2007-ST dated 22.05.2007**, and various CBEC circulars.
---
### 📌 Summary:
| Issue | Status |
| --------------------------------------- | ---------------------------------------------- |
| Renting to nursing home | **Taxable as “renting of immovable property”** |
| Service Tax applicable? | **Yes** (under Section 65(105)(zzzz)) |
| Can assessee collect from nursing home? | **Yes**, if contractually agreed |
| Is healthcare exemption applicable? | **No**, not to landlord/renting |
---
Let me know if you'd like a short legal summary in PDF or printable form.
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