If service provider - A Partnership Firm has let out a building of two floors to a company, under two different agreements stating that first floor is for Business purpose and rent payable is Rs 8,00,000/- P.M and second floor is for residential purpose of the company's employees for rent of Rs 3,00,000/- P.M. Should the service provider needs to pay Service Tax on the amount Rent collected for let out of Second floor for residential purpose.
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Service tax on Rent
Replies (2)
both parts are commercial, as the company is payee and its used for its commercial employees.
service tax is applicable on gross sum addiing both the floors
If the premises is residential in my opinion, it does not matter who is paying the rent. Renting of commercial premises wouldbe liable as accomodation is excluded. However the new entry of a/c accomodation over 1000 declared value may have tobe examined.
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