In case an individual lets out a flat to a company which is in an occupation of subletting parts of such properties to individuals for residential purpose, will the rent charged by the Landlord (individual) to the Company attract service tax?
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Service tax applicability on rent for immovable property
Replies (4)
| Originally posted by : Ankit Mehrotra | ||
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In case an individual lets out a flat to a company which is in an occupation of subletting parts of such properties to individuals for residential purpose, will the rent charged by the Landlord (individual) to the Company attract service tax? |  |
The transaction will attract service tax.
Yes it comes under the net of service tax.
There are 2 parts: Original letting out - Could be liable as it is let out for business.
Sub letting for residential purpose - The letting out ( sub letting also) of residentail flat for purpose of residence is not liable to ST. Whether company does it or individual is not important.
However if it were for short stay ( like service aparatment) then there could be a liability if more than Rs.1000/- collected per day. If so then the question of letting out for residential purpose would not be the purpose and it would be for business.
I m agree with sir if letting to commercial purpose and rent is exceed 1000 per day then taxable but if it is let out for residential purpose then not taxable
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