Service tax on farm house

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This query is : Resolved

Manish Bansal (Querist)

22 July 2013 Hi,

A farm house is let out by an Individual to a company and that company has given this farm house to its Director for residence purpose as Rent free accomodation.

Please let me know, should that individual charge service tax on rent recieved from the company.....

Jayant Bothra

Jayant Bothra (Expert)

22 July 2013 Dear Manish,

The individual is not liable to charge service tax on the same as he had given it for the residential purpose and not for the commercial purpose therefore the same is out of the purview or service tax vide entry no. (m) of Section 66D (Negative List).

Thanks & Regards
CA Jayant BOthra
email: ca.jayantbothra@gmail.com
M: 9873-626-020

Manish Bansal

Manish Bansal (Querist)

22 July 2013 Thanks.......

Manish Bansal

Manish Bansal (Querist)

22 July 2013 Is the answer same if electricity Meter for the Farm house is commercial ??

Jayant Bothra

Jayant Bothra (Expert)

22 July 2013 Yes the answer is same. Reason being merely because of meter is commercial it wont be considered as commercial. The use is Residential that's essential.
Secondly, even when a commercial place is given for residential purpose it is exempted from service tax vide Entry no. 18 of notification no. 25/2012-ST dated 20.06.2012.

Thanks & regards
CA JAYANT BOTHRA
email: ca.jayantbothra@gmail.com

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