Service tax on renting of immovable properties

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Keyur Shah (Querist)
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15 April 2012 We have Chain of Hotels in India. These Hotels are given for Short Term Accommodation to Guests. The Buildings are taken on lease on which monthly rents are paid to the Landlords. In the Clause ZZZZ, it is written that immovable properties does not include buildings used for accommodation including hotels.Landlords charges Service tax on renting of building. Does Service Tax is applicable on this.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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15 April 2012 Yes this shall be liable for Service tax...if the landloard is receiving an annual payment towards the rent from the rented building of more than Rs. 10 Lakhs in a year.

Keyur Shah

Keyur Shah (Querist)
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15 April 2012 In the Clause ZZZZ, it is written that immovable properties does not include buildings used for accommodation including hotels.Landlords charges Service tax on renting of building. Does Service Tax is applicable on this.

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