Service tax on rent for accommodation

if residential house has been given on rent for residential purpose then no service tax is levied.

Position before 1.7.2012

Definition and scope of service: 
 “Immovable property”, for the purpose of section 65(105)(zzzz), includes-
 (i) building and part of a building, and the land appurtenant thereto; 
(ii) land incidental to the use of such building or part of a building; 
(iii) the common or shared areas and facilities relating thereto; and 
(iv) in case of a building located in a complex or an industrial estate, all common areas and 
facilities relating thereto, within such complex or estate, but does not include- 
(a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal 
husbandry, mining purposes; 
(b) vacant land, whether or not having facilities clearly incidental to the use of such vacant 
land; 
(c) land used for educational, sports, circus, entertainment and parking purposes; and 
(d) building used solely for residential purposes and buildings used for the purposes of 
accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, 
camping facilities. 
Explanation.- For the purpose of this sub-clause, an immovable property partly for use in 
the course or furtherance of business or commerce and partly for residential or any other 
purposes shall be deemed to be immovable property for use in the course or furtherance of 
business or commerce. 
 (Section 65 (105) (zzzz) of Finance Act, 1994 as amended) 

Position after 1.7.2012

Refer 25/2012 SL 18 

Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent.

Thanks

Venkat