Service tax on leased accomodation to company

I have leased some rooms and flats to a company in which employees of the company are staying. We have mentioned in the agreement that the premise is to be utilised for exclusive residential purpose and they are utilising it accordingly. I am receiving rent Rs.12 lakh per year from them. Is service tax applicable in this case?

Replies (2)

In Renting of Immoveable Property service there is a specific exclusion for the property which has been used as Boarding houses. Since the property has been used as geust houses by your company. It falls under the specific exclusion of Renting of immoveable property service and hence Service tax is not applicable Properties are not liable for service tax under Renting of Immoveable property:

i. Renting of immovable property by a religious body or to a religious body

ii. Renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching center.

iii. Land used for educational, sports, circus, entertainment and parking purpose and

iv. Building used solely for residential purpose and building used for accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities.
 

so, service tax applicable for your case.

 

Regards

Ashok

As per Negative list under Sec.66D of the Finance Act, 2012;

"services by way of renting of residential dwelling for use as residence"

Hence, as per negative list not service tax can be applicable in your case...

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