sir,
3directors purchase the building in individual capicity and give it on lease to pvt ltd of the same director and start the hotel provide lodging and boarding facility to public. after 2 year company rented this property to another company they used this property for same nature of business(lodging and boarding).
situation as follows
x,y,z directors lease out building to "a" company and company pay lease rent to directors for this 1lakh p.m.each director.
after 2 year "a" company let out property to" b" company and b company pay lease rent to "a' company 36lakh
whether renting of property liable to service tax or not .
defination given in the act for immovable property excludes "building used for hotel" so i confuse whether we should pay service tax or not
whether both directors and company "a" liable to pay service tax
please solve my query
CAclubindia
